The meaning of accounting standards

Accounting as a "language of business" communication the financial results of an enterprise to various interested parties by means of financial statmetns which have to exhinit a "true and fair" view of its state of affairs.

Accounting standards which seek to sugest rules and criteria of accounitng measurements, have to keep the set of rules, social needs, legal requirments and technological developmetns in view.

Formulation of proper accounting standards, therefore is a vital step in developing accounting as a business lanuguage.