Page 44 - Corporate Finance PDF Final new link
P. 44

NPP













                  44                                Corporate Finance                      BRILLIANT’S

                                                                                     1.2






                       OVERVIEW OF ACCOUNTING STANDARDS /  AH$mC§qQ>J ñQ>¢S>S²>©g H$m AdbmoH$Z

                    Q.5. What is meant by the term "Accounting standards"? Write its objectives.
                         'AH$mC§qQ>J ñQ>¡S>S²>g©' eãX H$m Š`m AW© h¡? BgHo$ CÔoí` {b{IE&
                                                           OR
                         Show the evolution of accounting standards. Also describe the Accounting standards
                         issued by ICAI.
                         AH$mC§qQ>J ñQ>¢S>S²>©g H$s CËn{Îm Xem©B`o& ICAI Ûmam Omar AH$mC§qQ>J ñQ>¢S>S²>©g H$m ^r dU©Z H$s{OE&

                  Introduction                                n[aM`
                      In earlier time, the traders and business   nwamZo g_` _| Q´>oS>g© VWm {~OZog Am°J}ZmBOoe§g H$mo
                  organisations  had the  duty to  satisfy only  a  {ZdoeH$m| Ho$ Ho$db EH$ N>moQ>o g_yh H$mo g§Vwï> H$aZm hmoVm Wm
                  small group of investors which includes their
                  relatives,  friends, who  aquire  the  financial  {Og_| CZHo$ g§~§Yr, {_Ì gpå_{bV hmoVo Wo Omo CZH$s
                  property of their business.                 Am{W©H$ g§n{Îm go àmßV hmoVo Wo&
                      These days, millions of investors put their  BZ {XZm| bmIm| {ZdoeH$ nyao {díd _| hOmam| H§$nZrO _|
                  money into thousands of companies all over  AnZm YZ bJmVo h¢ VWm {~OZog Am°J}ZmBOoeZ Z Ho$db
                  the  world,  and  business  organisations  are  AnZo H«o${S>Q>g© VWm {ZdoeH$m| A{nVw AÝ` JdZ©_|Q> AWm°[aQ>rO
                  legally bound to prepare financial statements
                  for not only their creditors and investors, but  VWm Q>¡Šg Ho$ {bE ^r \$m`Z|{e`b ñQ>oQ>_|Q²>g V¡`ma H$aZo
                  also for tax and other government authorities.  Ho$ {bE H$mZyZr ê$n go ~mÜ` hmoVo h¢&
                      The  basic  objective  of  accounting       AH$mC§qQ>J ñQ>¢S>S²>©g H$m àmW{_H$ CÔoí` `h gw{ZpíMV
                  standards  is  to  ensure  that  there  are  no  H$aZm h¡ {H$ AH$mC§qQ>J H$s {d{Y _| VWm AH$mC§Q²>g H$s
                  differences in the approach to accounting and  àñVw{V Ho$ _mZH$sH$aU _| H$moB© A§Va Zht h¡&
                  to standardise the presentation of accounts.
                      Companies follow the general principles     H§$nZrO A§Vam©ï´>r` ê$n go nmbZ {H$`o OmZo dmbo
                  of accounting followed internationally, so that  AH$mC§qQ>J Ho$ gm_mÝ` {gÕm§Vm| H$m nmbZ H$aVr h¢ {Oggo
                  it  is  possible  to  compare  their  financial  {H$ CZHo$ {dÎmr` {ddaU H$s VwbZm H$aZm g§^d hmoVm h¡ Omo
                  statements, which record various facets of their  AÝ` H§$nZrO Ho$ gmW CZHo$ àXe©Z Ho$ {d{^ÝZ nhbwAm|
                  performance, with those of other companies.  H$mo [aH$m°S>© H$aVm h¡&

                      Globally,  companies  prepare  their        d¡pídH$ ê$n go H§$nZrO ''OZabr EŠgoßQ>oS> AH$mC§qQ>J
                  financial  statements  under  the  "Generally  qà{gnëg'' (GAAP), B§Q>aZoeZb \$m`Z|{e`b [anmo{Q>ªJ
                  Accepted  Accounting  Principles"  (GAAP),  ñQ>¢S>S²>©g (IFRS) VWm nyao {díd _| nmbZ {H$`o OmZo dmbo
                  International  Financial  Reporting  Standards
                  (IFRS),  and  other  standard  rules  and   AÝ` _mZH$ {Z`_m| VWm à{H«$`mAm| Ho$ A§VJ©V CZHo$
                  procedures followed throughout the world.   \$m`Z|{e`b ñQ>oQ>_|Q²>g V¡`ma H$aVr h¢&
                                                           [44]
   39   40   41   42   43   44   45   46   47   48   49