Accounting Standards simply refers to guidelines to be followed in the accounting system. It means rules & regulation that are to be followed while recording accounting & financial transactions. It governs the manner in which financial statements are prepared & presented. The scope of the accounting standard provides accounting norms, conformity with laws, ensure reliable financial statements, act as a harmonizer, determine the extent of disclosure. The scope of accounting standard are to improve the credibility and reliability of financial statements, benefits to accountants and auditors, determining managerial accountability, reform in accounting theory and practice. The limitation regarding account standards are brings inflexibility & rigidity, involves high costs, difficult to choose among alternatives, scope is restricted, time-consuming.

Abhijith S

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