Advantages And Disadvantages Of Accounting Standards Accounting Essay

Advantages And Disadvantages Of method of accounting Standards chronicle EssayIntroductionIn accounting, for each basis, identification and measurement of the elements of fiscal statement and the impact of the circumstances and financial status and work results should be defined in a form of standards. These standards ar like the rules for accounting in any country. That is why they de none what should be mentioned in any companys accounts. Moreover, they guarantee that certain cases, approaches and requirements are taken into account normally. In addition, they help people who are interested in coronation to make decisions by ensuring that they engage appropriate information needed. This is the idea behind accounting standards.When we berate about accounting standards, the main thing that comes under them is the accounting report. According to the International Accounting Standards committal (IASC), accounting reports are documents filled out by brokers that give details an d facts about a new clients financial circumstances and investment objectives. The report may be updated if there are material changes in a client financial position. Based on the report, a client may or may not be deemed eligible for certain types of crazy investments such as commodity trading or highly leveraged limited partnership deals.The second main thing is the framework. According to the Financial Accounting Standards batting order in the US, the conceptual framework is the system of fundamentals and objectives that make consistent standards by knowing that the accounting report does not mean the rules barely the guidelines. Actually, rules are set in the accounting standards which we can formulate from the framework. But when we face an interpretation conflict, it takes some requirements over the framework.International Accounting Standards Committee (IASC), http//www.iasb.orgAccounting Standards, Advantages and DisadvantagesHaving give tongue to that accounting standar ds are the provider of the rules, conditions and consistency, they may hold some pros and cons while they are being implemented and taken in any company. Efficiency and strong point can be gotten through consistency if different organizations apply them than other organizations in their financial transactions. If we ask ourselves about the main reason behind bookkeeping practices, the answer would be that companies with different forms and a wide range of data to be maintained are better than those that have the same data categorized less in the same shape and ordain face a very big problem in trying to do business together. Hence, the rightness and court have standard operations and businesses in fact, should denote all of its operations and transactions. According to Elliot (2009) companies should organize their operations with standard clients, competitors, customers, and suppliers. If we want to issue overhaul standards of financial accounting, we have to take into account t he direction of the economy to establish joint stock companies with large capital. Its necessary to expand the vision of accounting standards consort to communication and delivery of accounting information to lead to the need for that information to let them assess the performance of businesses to make good decisions with regards to their investment. Accounting standards are a very significant practice as it leads to effective corporate governance programs. They also provide a useful mechanism to rebuild the corporate values.Schipper, K. (2003). Principles-Based Accounting Standards. Accounting Horizons, 17(1), 61-72The Need for Accounting StandardsThe need for accounting standards has been a very important aspect to ensure that comparability, accuracy and transparency are needed for the integration of European financial markets, which is according to the International Accounting Standards Committee (IASC). We need accounting standards to develop the measures of performance in any form of life, whether it is in financial reporting, returns and funds, or even playing a game. Actually, high quality financial reporting is connected with efficient capital markets so as to lead for investment to be well done. If we want the economy to function efficiently, we should have accounting standards because they help us reach our destiny. With accounting standards and good financial reporting, customers can get a clear image about business activities and financial conditions. To make it very clear, I will just mention a small shell created by me that will really denote and clarify the real need for accounting standards in any business enterprise. With known and organized accounting standards, when the join of the net income of Fathiya Company and Abeer Company is 2 million Omani Rials, we are sure that we can make a meaningful comparison. According to Schipper (2003) says that without standards, we cannot get the philia aspect of assurance, for instance, whether Fathiy a Company is considering the orders of the future as current sales or releasing a big amount of its expenses.Financial Accounting Standards Board, http//www.fasb.orgBusiness without Accounting StandardsIt was clear that accounting standards are very important to any business. Businesses can do whatever they want to reach certain goals without the need for accounting standards, but not as well as businesses that take accounting standards into account. Without accounting standards, businesses cannot guarantee that they will consider their future list of objectives or will return some expenses. Furthermore, businesses cannot organize operations with their customers, suppliers and even competitors without applying at least some accounting standards. Moreover, if businesses do not apply accounting standards, they definitely will not be able to structure their business well and will lead to the corporate values to be missed.Elliot, B. and Elliot, E. Financial Accounting and Reporting 13t h edition, 2009 Chapters 5 and7Accounting Standards in Oman and abroadOman has prepared the financial statements in accordance with International Accounting standards (IAS), the interpretations which are prepared by the Standing Interpretation Committee of the IASC and the requirements of the Commercial Companies Law of the Sultanate of Oman and the requirements set out in the rules for disclosure issued by the Capital Market Authority of the Sultanate of Oman, the disclosure is inadequate and is a negative phenomenon to a country which wishes to be strengthened further a good economy. Accounting standards in Oman may besomehow related to the accounting standards outside Oman, because, in some extent, they all come under the International Accounting Standards Committee (IASC).International Accounting Standards Committee (IASC), http//www.iasb.orgRecommendations and ConclusionAs an accounting student, I barrack all companies in Oman to have a set of accounting standards and reports in order to build a reliable business that can rank them in the top of the list of good companies.To conclude, we should think of accounting standards as the key of success for different business enterprises. In addition, if companies apply accounting standards well, other companies will look up to them to do business strategies as well as they do.