All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Commerce Exam  >  Commerce Questions  >  Accounting standards have been evolved to imp... Start Learning for Free
SaveJoin the Discussion on the App
Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards?
Clear all your Commerce doubts with EduRev
Most Upvoted Answer
Accounting standards have been evolved to improve the reliability and ...
Objectives of Accounting Standards


Improving Reliability and Credibility of Financial Statements

The primary objective of accounting standards is to improve the reliability and credibility of financial statements. By setting specific guidelines and requirements, accounting standards ensure that financial information is presented accurately and consistently. This helps investors and other stakeholders make informed decisions based on reliable financial data.


Ensuring Consistency and Comparability

Accounting standards also aim to ensure consistency and comparability of financial statements. With consistent accounting policies and procedures, financial statements can be easily compared across different companies and industries.


Facilitating International Trade and Investment

By providing a common language for financial reporting, accounting standards facilitate international trade and investment. With consistent financial reporting standards, investors can easily understand and compare financial information across different countries and regions.


Preventing Fraud and Mismanagement

Accounting standards also aim to prevent fraud and mismanagement by setting specific requirements for financial reporting. By requiring companies to disclose certain information and follow specific accounting procedures, accounting standards help prevent fraudulent activities and ensure that companies are managed in a responsible manner.


Providing Solutions to Conflicts

In case of conflicts among various groups, accounting standards provide solutions by setting specific guidelines and requirements. This helps ensure that financial reporting is consistent and reliable, and that conflicts are resolved in a fair and transparent manner.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Similar Commerce Doubts

Read the following hypothetical Case Study and answer the given questions:The financial statements, comprising the Trading A/c, Profit & Loss Account, Balance Sheet and Cash Flow Statement, that are prepared from the accounting information are published for the use by different entities, persons, etc. It is therefore essential that the published information is based on defined principles, concrete concepts and conventions. Accounting principles are the basic guidelines that provide standards for accounting practices and procedures to be followed, so that uniformity in accounting transactions is maintained. Accounting concepts are the assumptions on the basis of which financial statements are prepared. Accounting conventions emerge out of the accounting practices that have been followed by various organizations, over a period of time. The generally accepted accounting principles are generally accepted accounting standards. The concepts on the basis of which the financial statements are prepared and are agreed upon by the accountants, acting as a foundation for accounting are called accounting concepts. They are uniform set of rules for uniformity and understandability of accounting information. They are derived from experience. They are not static. It needs to satisfy relevance, objectivity and feasibility. The going concern concept assumes that the enterprise has neither any intention nor any necessity to close the business and will last for a long time. It enables the firms to enter into long term contracts. It enables for the charge or depreciation on assets which have fixed life. Due to this concept prepaid expenses are treated as assets. It helps in the classification of assets and liabilities. According to Consistency concept, the accounting principles and methods should be consistent. It should not vary every year. It enables to compare the financial stability of the business. There needs to be consistency in valuation of stock, depreciation and provisions, to enable better decision making by the management. It doesn’t mean that the accounting methods should not change, but the nature and effect and the reason for change should be stated.Which of the following is not the purpose served by Accounting standards?

Top Courses for CommerceView all

Top Courses for Commerce

Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards?
Question Description
Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards?.
Solutions for Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards? defined & explained in the simplest way possible. Besides giving the explanation of Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards?, a detailed solution for Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards? has been provided alongside types of Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards? theory, EduRev gives you an ample number of questions to practice Accounting standards have been evolved to improve the reliability and credibility of financial statements. Accounting standards provide the solutions in case of conflicts among various groups.In light of this statement,enumerate the objectives of accounting standards? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup