1. Chapter:- 5 Introduction and Relevance of Accounting Standards
F.Y.B.Com
Sub- Financial Accountancy
Prof.P.A.Navale

2. Introduction:-
Accounting standards are written documents, policy documents issued by expert accounting body or by Govt. or other regulatory body covering the aspects of recognition, measurement, treatment, presentation and disclosure of accounting transactions in the financial statement.

3. Advantages of accounting standards:-
Standards reduce to a reasonable extent variation in the accounting treatment used to prepare the financial statements.
There are certain areas where important information is not required by law to be disclosed, standards may require such disclosure.
It facilitates comparison of financial statements of different companies situated at different places.

4. Disadvantages:-
1)There are may be a trend towards rigidity in applying accounting standards.
2) Differences in accounting standards are bound to be because of differences in traditions and legal system from one.
3) Accounting standards can not override the law.
4) The choice between better alternative accounting treatment in a particular situation is eliminated.

5. Scope of accounting standards:-
The accounting standards which are in conformity with the provisions of applicable laws, customs, usages and business environment in India.
It not override the local regulations which govern the preparation and presentation of financial statement in country.
They are determine the extent of disclosure to be made in the financial statement and the auditors report.

6. THANK YOU