Accounting Standards summarize the definite measures necessary to create reliable and efficient reports. Their reason is also to get better the excellence and the convenience of the financial statements. To endorse world-wide consistency in available accounts, the International Accounting Standards Committee (IASC) has been set up in June 1973 with nine nations as founder members. Accounting standards are reliable standards for financial reporting and are the principal source of generally accepted accounting principles (GAAP). Accounting standards identify how transactions and other events are to be documented, calculated, accessible and disclosed in financial statements.
The reason of this team is to create and circulate in public interest, standards to be practical in the appearance of audited financial statements and to uphold their world-wide approval and execution. IASC subsist to decrease the differences between diverse countries’ accounting practices. This procedure of coordination will formulate it easier for the users and preparers of financial statement to function diagonally worldwide boundaries.