All of the following are limitations of Accounting Standards except
  • a)
    The choice between different alternative accounting treatments is difficult. 
  • b)
    There may be trend towards rigidity. 
  • c)
    Accounting Standards cannot override the statute. 
  • d)
    All of the above. 
Correct answer is option 'D'. Can you explain this answer?

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Answers

Amit Ahlawat
Sep 19, 2018
Limitations of Accounting Standards 
• Alter native solutions to certain accounting policies may each have arguments attached to them. So, the choice between different alter native accounting treatments becomes difficult 
• Generally there is rigidity in applying the Accounting Standards 
• The standards are required to be framed within the ambit of prevailing statutes. Accounting Standards cannot override the statute 

Limitations of Accounting Standards• Alter native solutions to certain accounting policies may each have arguments attached to them. So, the choice between different alter native accounting treatments becomes difficult• Generally there is rigidity in applying the Accounting Standards• The standards are required to be framed within the ambit of prevailing statutes. Accounting Standards cannot override the statute
Limitations of Accounting Standards• Alter native solutions to certain accounting policies may each have arguments attached to them. So, the choice between different alter native accounting treatments becomes difficult• Generally there is rigidity in applying the Accounting Standards• The standards are required to be framed within the ambit of prevailing statutes. Accounting Standards cannot override the statute