Advantages of Accounting Standards
- By adoption the Accounting Standards confusing variations in the accounting treatment used to prepare financial statements is reduced
- Accounting Standards describe the accounting principles, the valuation techniques and the method of applying accounting principle so as to ensure true and fair view
- Where important information is not statutorily required, Accounting Standards calls for its disclosure
- Accounting Standards facilitate comparison of financial statements of companies in the same industry situated in different parts of the world
- Accounting Standards helps in resolving conflict of financial interest among various groups
- Accounting Standards helps the auditors in case of preparation of financial statement and any deviaion can be disclosed in the reports so that the user is aware of such deviation.