Accounting Standard committee:

Question

Accounting Standard #committee: The international Accounts Standards +committee (IA S) was established on 89 th :une 19;<. The IA S so far issued <9 International Accounting Standards (IAS). In India, the Accounting Standards International Accounting Standards (IAS). In India, the account Standards board (AS)was constituted by Institute of +chartered Accountants of India (I+AI) on April 81, 19;;. So far this oard issued1= accounting standards.

Answer 1

Accounting Standards Committee

Accounting standards are rules and guidelines that help businesses prepare financial statements accurately, consistently, and transparently.

1. International Accounting Standards Committee (IASC)

The International Accounting Standards Committee (IASC) was established on June 29, 1973.

Its primary purpose was to develop accounting standards that could be used internationally, making financial statements more consistent and comparable across countries.

The IASC issued 41 International Accounting Standards (IAS), numbered IAS 1 through IAS 41, although not all remain in effect today.

In 2001, the International Accounting Standards Board (IASB) replaced the IASC as the international accounting standard-setting body.

The IASB now issues International Financial Reporting Standards (IFRS).

2. Accounting Standards Board (ASB) in India

In India, the Accounting Standards Board (ASB) was established by the Institute of Chartered Accountants of India (ICAI) on April 21, 1977.

Its purpose is to develop accounting standards that promote consistency, reliability, and transparency in financial reporting.

The ASB plays an important role in formulating Indian Accounting Standards and supporting their alignment with international accounting practices.

3. Importance of Accounting Standards

Accounting standards are important because they:

1. Promote consistency in financial reporting.
2. Make financial statements easier to compare.
3. Improve transparency and accountability.
4. Help investors and creditors make informed decisions.
5. Reduce misleading or inconsistent accounting practices.

Final Answer:

The International Accounting Standards Committee (IASC) was established on June 29, 1973, to develop international accounting standards. In India, the Accounting Standards Board (ASB) was established by the ICAI on April 21, 1977, to develop accounting standards for Indian businesses.

Both organizations have contributed to improving the quality, consistency, and reliability of financial reporting.