Class XI - Chapter 3 - Theory Base of Accounting - Accounting Standards By S. K. Ray Video Lecture - Commerce

accounting standards the rise in
diversity complexity globalization of
business mayor the story of accounting
information essential but the diversity
in the accounting policies being
followed and the accounting treatment of
transactions and events made the
accounting information less meaningful
and also incomparable a need was this
felt that certain maximum standards
should be universally applicable so that
the accounting statements have the
qualitative characteristics of
reliability relevance understandability
and comparability I just taped towards
this an International Accounting
standard committee ie ASC now named as
international financial reporting
committee was set up in the year 1973
the objectives of this committee are a
part to formulate and publish in public
interest accounting standards to be
observed in the presentation of a
financial statements and also their
world I'd wide acceptance and be bought
to work for the improvement and
harmonization of regulation of
accounting standards and procedures to
the presentation of a financial
transactions the Institute of Chartered
Accountants of India and the Institute
of cost accountants of india are a
member members of this committee the
Institute of Chartered Accountants of
India in April 1977
set up the Accounting Standards Board
IASB to identify areas of accounting
where alternative and diverse practices
were followed
ASB Accounting Standards Board with a
purpose to bring uniformity in practices
was assigned the task of developing
graph draft accounting standards keeping
in view the legal provisions of the
country and after discussions with gum
government representatives public sector
undertakings industry Federation's
etcetera while naming the draft
Accounting Standards ASB Accounting
Standards Board consider the
internationally internationally
accounting standards also SV Accounting
Standards Board submits the draft
accounting standards to the council the
Institute of Chartered Accountants of
India who is issues it for the comments
of the comment included in industry as
professionals etc the Council of the
Institute of Chartered Accountants of
India gives a due consideration to the
comments received by amending the draft
accounting standards if necessary before
notifying it