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β€˜Accounting Standard’ is defined as the regular announcements made by institutions of the accounting profession or organizations in which it has active participation. Some of the institutions currently found in many countries of the world are Financial Accounting Standards Board (USA), Accounting Standards Committee (Canada), Accounting Standards Board (UK), Accounting Standards Board (India), etc.

Benefits of accounting standards-

  1. It helps to settle disagreement of financial interest among different parties.
  2. It helps the auditors to prepare monetary announcement statement. It may also reveal any divergence in the reports to make the user aware of the divergence.
  3. It describes the accounting principles, the estimation methods and way of implementing accounting principle so as to signify true and just values.

Management of accounting standards-

  1. It involves the ideas of economic facts to be applied by management in making settlements.
  2. Only the internal users can avail the reports made in managerial accounting are strictly for use by internal users
  3. It deals with managing statistics which is helpful in the settlement.

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