An Analytical Study of Accounting Standards in India
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Accounting is the science of keeping track of and looking at information about money. It is made up of a set of rules that are not as rigid as the rules in the physical sciences. The rules of accounting are
They are flexible because they depend on habits, customs, local laws and rules, and the business environment. This leads to different ways of doing accounting. If this accounting practices are done according to the rules and not with bad intentions, then everything is fine. But when the line is crossed, people start to be suspicious. In accounting circles all over the world, everyone agrees that financial statements should show a true and fair picture of what has happened and been done in the business. This can only happen if the financial statements are reliable, consistent, and easy to compare. When accounting rules are bent to fit individual needs, it defeats the whole point of putting together and presenting financial statements. And the people who use the financial statements, like investors, potential investors, creditors, banks and other financial institutions, tax authorities, other government agencies, or the general public, are the ones who lose the most.
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