![]() According to ICAI as on 1 st September, 2014 there are 28 mandatory AS and 3 non-mandatory AS. As a general rule, they are applicable to all corporate entities. Accounting Standards act as both guideline and yardstick for measurement. In India, Accounting Standards (AS) are issued by Accounting Standard Board ( ASF) constituted by Institute of Chartered Accountants of India ( ICAI) to maintain uniformity in maintaining financial records. all potential losses should be recorded while all prospective gains should be left out. rules and principles used to record transactions should remain consistent so that they remain comparable, Prudence or Conservatism Principle i.e. all material information should be recorded and unimportant information is left out while making decisions, Consistency Principles i.e. cost of applying a principle should not be more than benefit derived from it, Materiality Principle i.e. Some of these are Cost Benefit Principle i.e. There are certain basic assumptions and underlying principles on which GAAP are based. they can be implemented without large cost of complexities. they are not influenced by the personal bias and judgement of the person providing accounting information and Feasibility i.e. they should be relevant to the extent that it result in the information which is useful and meaning for the end user of accounting information, Objectivity i.e. The general acceptability of these principles depend of how well they satisfy the criteria of Relevance i.e. These principles are often called by various names such as postulates, assumptions, concepts and conventions etc. They are used to maintain consistency and uniformity in accounting records throughout the country. Generally accepted accounting principles (GAAP) are defined as the rules of action or conduct which are derived from experience and practice which when prove useful become accepted as principles of accounting.
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