Class 10, Account. Accounting Standard.pptx

This slide share is presented to the students of class 10 Office Practice and Accountancy. This is prepared by Govinda Khanal.

1. Accounting Standard Class 10 Accountancy

2. Introduction to Accounting Standard Accounting standards are Common set of principles, standards and procedure. They define the basis of accounting policies and practices. Accounting standard improve transparency of financial reporting by ensuring that the information about given entity is relevant and accurate. The main objective of accounting standard is to bring a common base for evaluation through uniform presentation, measurement, treatments and disclosure of financial events.

3. Introduction to Accounting Standard Examples of IAS are IFRS (International Financial Reporting Standards) It Is European Based & most famous in the world GAAP (Generally Accepted Accounting Principles) It is US based NFRS (Nepal Financial Reporting Standards) It is Nepal Based & Based on IFRS

4. Introduction to NFRS Government of Nepal established Accounting Standard Board (ASB) in 2003 March 10. Nepal Financial Reporting Standards (NFRS) are a set of accounting standards developed by the Accounting Standard Board (ASB). NFRS Provides a set of principles to be followed while accounting for transaction and events in financial statements

5. Objectives/Importance of NFRS or NAS Fostering Investor Confidence by providing necessary information. Assessing the international financial market. Making uniformity in accounting reporting system. Formulate accounting assumption standards in line with IFRS. To encourage the accountants to maintain book of accounts in a way that they are comparable, understandable, reliable and relevant. To provide information about financial position, performance and change in financial position.

6. Uses of NFRS or NAS An accounting standard is applied to all purpose of financial statements which is prepared and presented in accordance with NAS. NAS applies equally to the financial statements of individual entities and to consolidated financial statements for group of entities with accounting policies. NAS also applies to all companies including public sector business entities. NFRS is useful to business organization, Non Profit organization, government and other sector.