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Think of what would happen if different Organizations are given a chance to maintain their Accounts in their own sweet ways. They could be interpreted in countless different ways. There would simply be no comparability of numbers of different bodies and even different periods within the same Organization. Investors won’t have a clue about where to put their money, and creditors will become totally blind about the security of their debts.
Accounting Standards thus came to the rescue by bringing in the standardization, parity and consistency in the Accounting field, facilitating comparability and dependability.
What are Accounting Standards?
Accounting standards are documents issued by approved accounting bodies on specific accounting topics. A standard would usually define the topic and its coverage, stipulate the accounting treatment under various foreseeable situations, and state the mandatory Disclosure requirements.
Different accounting Bodies hold their jurisdiction in different parts of the world. While currently over a hundred accounting Standards rule in different countries, two of them stand way ahead of others in their jurisdiction coverage.
1)   GAAP –
That is, Standards & Interpretations issued by FASB, ARB and APB in the US. The jurisdiction covers primarily in the USA.
2)   IFRS/IAS –
Regulated by IASB, and has been adopted by an increasingly large number of countries in Asia, Europe and Africa.
Attempts are on to converge different Accounting practices under one common universal Standard.
Difficulties faced in Accounting Standards Homework
Accounting Standards Assignments often pose a substantial challenge to the Accounting students at all levels. Standards always come pretty elaborate, and often with a fine difference in the applicability in different situations. One has to have a real thorough knowledge of the entire text and note the minute differences. Further, students may not always have a familiarity with all practical situations, which could well be essential to appreciate the Standards in the true spirit.
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