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Accounting Standards (AS) are described in the lesson as written policy documents issued by expert accounting bodies or regulators. Which combination correctly captures their ostensible purpose as the lesson states it?
Answer & Solution
Correct answer: B.
1. The lesson sets out the purpose of Accounting Standards.
2. It is to disseminate timely and useful financial information to investors and other interested parties.
3. AS also reduce alternatives in presentation so that statements of different enterprises are comparable.
4. Tax discrimination, foreign GAAP imposition and replacing the Companies Act are not AS purposes.
_Source: ICSI CS Executive Paper 5 (Corporate and Management Accounting) — Lesson 1 & 2: Introduction to Financial and Corporate Accounting, pp. v–vii and x._
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