The Path to a Greener Future: Understanding Sustainable Development In an era where environmental challenges and resource depletion are becoming increasingly evident, the concept of sustainable development has gained significant importance. Sustainable development aims to meet the needs of the present without compromising the ability of future generations to meet their own needs. This blog post will explore the principles, goals, and strategies of sustainable development, highlighting its critical role in ensuring a balanced and healthy future for our planet. "Transforming our world: The path to sustainable development." What is Sustainable Development? Sustainable development is a holistic approach that integrates economic growth, environmental protection, and social equity. It seeks to create a harmonious relationship between human activities and the natural world, ensuring that resources are used efficiently and responsibly. Definition: The most widely recognized de...
BENEFITS AND LIMITATIONS
Accounting Standards seeks 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.The following are the benefits of Accounting Standards:
1. Standardization of alternative accounting treatments: Standards reduce to a reasonable extend or eliminate altogether confusing variations in the accounting treatments used to prepare financial statements.2. Requirements for additional disclosures: There are certain areas where important information are not statutory required to be disclosed standards may call for disclosure beyond that required by law.
3. Comparability of financial statements: The application of accounting standards would facilitate comparison of financial statements of different companies situated in India and facilitates comparison to a limited extend of financial statements of companies situated in different parts of the world.
However, there are some limitation of setting Accounting Standards:
1. Difficulties in making choice between different treatments: Alternative solutions to certain accounting problems may each have arguments to recommend them. Therefore, the choice between different alternative accounting treatments may become difficult.2. Lack of flexibility: There may be a trend towards rigidly and away from flexibility in applying the accounting standards.
3. Restricted scope: Accounting Standards cannot override the stature. The standards are required to be framed within the ambit of prevailing statutes.
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