E T B

UNIVERSAL APPLICATION OF ACCOUNTING PRINCIPLES

ARE ACCOUNTING PRINCIPLES UNIVERSAL ? OR THEY VARY ACROSS THE NATIONS.

asked Sep 20, 2016 in General by Suraj Sharma (12 points) 138 views

1 Answer

+1 vote

Accounting Principles are also referred to as Generally Accepted Accounting Principles.  This means these principles are recognised by the Accounting Profession all over the world.  Why these principles are recognised all over the word?  The reason is very simple. . Accounting Statements to be of use must be reliable and comparable  Accounting Statements made by different organisations cannot be reliable unless every organisation follows the same accounting principles and policies year after year.  Similarly the Financial Statements of various organisations cannot be comparable unless they follow the same accounting principles and policies.  This is the reason that these Accounting Principles are followed strictly by the Accounting Profession while preparing Financial Statements.  

answered Sep 21, 2016 by jbsclasses (3,861 points)
...