Question: The accounting profession has attempted to develop a set of standards that is generally accepted and universally practiced. Without this set of standards, each company

The accounting profession has attempted to develop a set of standards that is generally accepted and universally practiced. Without this set of standards, each company would have to develop its own standards. Readers of financial statements would have to familiarize themselves with every company's peculiar accounting and reporting practices. As a result, it would be almost impossible to prepare statements that could be compared.

Explain the need for accounting standards. Discuss the needs for accounting standards and major policy-setting bodies and their role in the standard setting process (06 Marks)

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NEED OF ACCOUNTING STANDARDS I Reasons for setting the standards are a Comparison between two firms is possible if both of them maintain the same principle otherwise proper comparison is not possible ... View full answer

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