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Which is NOT a benefit of Accounting Standards?
AStandardisation of alternative accounting treatments
BComparability of financial statements
CAdditional disclosures
DIncrease in scope for creative accounting
Answer & Solution
Correct answer: D. Increase in scope for creative accounting
1. Step 1: Per Ch 1, ASs reduce scope for creative accounting.
2. Step 2: Standardisation, comparability and additional disclosures are explicit benefits.
3. Step 3: Increasing creative accounting is the opposite of what ASs achieve. Hence (D) is NOT a benefit.
_Source: ICAI BoS CA Inter Paper 1, Ch 1 "Introduction to Accounting Standards"_