Briefly describe the benefits of "Accounting Standards".

Accounting Standards seek to describe the accounting principles, the valuation techniques and the methods of applying the accounting principles in the preparation and presentation of financial statements so that they may give a true and fair view. By setting the Accounting Standards the accountant has following benefits: (i) Standardization of alternative accounting treatments: Standards reduce to a reasonable extent or eliminate altogether confusing variations in the accounting treatments used to prepare financial statements. (ii) Requirements for additional disclosures: There are certain areas where important information not statutorily required to be disclosed. Standards may call for disclosure if required by law. (iii) Comparability of financial statements: The application of Accounting Standards would, to a limited extent, facilitate comparison of financial statements of companies situated in different parts of the world, and also of different companies situated in the same country. However, it should be noted in this respect the differences in the institutions, traditions and legal systems from one country to another that give rise to differences in Accounting Standards adopted in different countries. (iv) Prevents Frauds and Accounting Manipulations: Accounting Standards (AS) lay down the accounting principles and methodologies that all entities must follow. One outcome of this is that the management of an entity cannot manipulate with financial data. Following these standards is not optional, it is compulsory. So these standards make it difficult for the management to misrepresent any financial information. It even makes it harder for them to commit any frauds. (v) Assists Auditors: Now the accounting standards lay down all the accounting policies, rules, regulations etc. in a written format. These policies have to be followed. So if an auditor checks that the policies have been correctly followed he can be assured that the financial statements are true and fair. (vi) Comparability: This is another major objective of accounting standards. Since all entities of the country follow the same set of standards their financial accounts become comparable to some extent. The users of the financial statements can analyze and compare the financial performances of various companies before taking any decisions. Also, two statements of the same company from different years can be compared. This will show the growth curve of the company to the users. (vii) Determining Managerial Accountability: The accounting standards help measure the performance of the management of an entity. It can help in gauging the management's ability to increase profitability, maintain the solvency of the firm, and other such important financial duties of the management.