Accounting Standards and Principles

• Accounting Standards are guidelines or practices for preparing uniform and consistent financial statements and disclosing accounting information.
• Established by the Institute of Chartered Accountants of India, a professional body.
• Mandatory for all companies to comply with.
• Objectives include providing reliability, simplifying accounting information, preventing frauds and manipulations, and improving corporate governance.
• Accounting Standards provide guidelines for recording and presenting financial statements, while Accounting Principles provide general guidelines for all financial transactions.
• Accounting Standards are more prescriptive and binding for accountants, while Accounting Principles offer less rigid and more flexible alternatives.
• Accounting Standards ensure fairness, consistency, and transparency in business conduct.
• Accounting Standards and Accounting Principles provide guidelines for financial reporting and disclosure, with the former being more uniform and comprehensive in nature.

Test your knowledge about the guidelines and practices for preparing uniform and consistent financial statements, established by the Institute of Chartered Accountants of India. Understand the objectives, differences, and importance of Accounting Standards and Accounting Principles.