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What is meant by the Accounting Standards?
The Accounting Standards is simply a set of rules, principles, standards, regulations, and methods that are implemented in the field of accounting. The accounting standards are enforced or regulated by the authoritative bodies such as IASB (International Accounting Standards Board), IFRS (International Financial Reporting Standards), GAAP (General Accepted Accounting Principles), AASB (Australian Accounting Standards Board) and UK Accounting Standards Board.
The most basic objective of the accounting standards is to remove the different methods of accounting and bring a standardized and common accounting process which would be followed by all the industries. The decision of bringing accounting standards allows an easy comparison of the financial position and other aspects of a company to others without paying any heed to the country or region in which it is placed.
The IFRS provides a common standard and platform to follow a unique process of accounting which allows the companies to compare themselves with others over international borders. Currently, there are more than sixteen countries that have accepted IFRS and this has increased the quality of accounting information and data and the investors can now better understand the various aspects of a company's accounts and financial position.
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