This GSEB Class 11 Commerce Accounts Notes Part 2 Chapter 7 Accounting Standards: Concept and Objectives covers all the important topics and concepts as mentioned in the chapter.

Accounting Standards: Concept and Objectives Class 11 GSEB Notes

There can be diverse accounting practices. Accountants and directors have different opinions on various practices. Different entities adopt different policies for the same accounting matter, therefore accounts do not remain comparable and useful conclusions cannot be drawn from such accounts. Thus, to bring uniformity in preparation and presentation of financial statements, attempts are made at the international and national level to formulate and issue accounting standards. Now, preparation is on in India also for applying IFRS (International Financial Reporting Standards).

→ Accounting Standards are a Code of Conduct imposed on accountants by custom, law and a professional body.

→ Accounting Standards are not rigid, it is also . variable.

→ International Accounting Standard Committee (IASC) came into being in the year 1973.

→ The Institute of Chartered Accountants of India and the Institute of Cost and Works Accountants of India are members of the IASC.

→ In India, the ICAI set up the ASB (Accounting Standards Board) on 21st April, 1977 to formulate accounting standards.

→ Now, preparation is on in India also for applying IFRS.

→ Accounting standards are prepared keeping in view the business environment and laws of the country.