Very Short Answer Questions
Q1. What are accounting standards?
Ans: These are written statements specifying uniform rules and practices for preparing the financial statements.
Q2. Give two points regarding nature of accounting standards.
Ans: (i) They lay down the norms of accounting policies to direct as to how the transactions should be recorded.
(ii) They remove the effect of diverse accounting policies.
Q3. Give two advantages of accounting standards.
(i) Accounting standards improve the reliability and credibility of financial statements.
(ii) Accounting standards ensure the consistency and comparability of Financial statements.
Q4. What are the two basic objectives of having Accounting standards?
(i) To ensure uniformity in accounting practices.
(ii) To ensure transparency, consistency and comparability.
Q5. Briefly explain your understanding of IFRS.
Ans: IFRS are the accounting standards issued by the IASB, recommended to be used by the enterprises globally to produce financial statements following a single set of accounting standards. IFRS are principle based accounting standards in comparison to rule based Indian Accounting Standards. Also they are based on fair value concept.
Q6. Which financial statements are prepared under IFRS?
Ans: Financial Statements prepared under IFRS include:
(i) Statement of Financial Position;
(ii) Statement of Comprehensive Income;
(iii) Statement of Changes in Equity;
(iv) Statement of Cash Flow; and
(v) Notes and Significant Accounting Policies.
Short answers Questions
Q1. Explain the nature of Accounting standards?
Q2. “ Accounting Standards ensure the consistency and comparability of Financial Statements.” Explain.
Q3. State four advantages of Accounting standards.
Q4. Name any six accounting Standards.
Q5. What are Accounting Standards? Name any two accounting standards.
Q6. Define Accounting Standards. What are their main objectives?
Q7. What are “International Financial Reporting standards? How many Indian Accounting standards (Ind-AS) have been issued so far?
Q8. What is the difficulty in implementing the International Financial Reporting Standards?
Q9. From which date the government will implement IFRS in India?