The purpose of this paper is of highlight the importance of the accounting standards in general for business as well as to provide arguments for the presence of a universal single code of ethical accounting standards which can provide the business with financial reporting methods and strategies for accurate results and comparable performance status and ratios. The issue of a conceptual framework for the accounting standards is highlighted and the importance of the role of the conceptual framework is provided in the discussion.
Accounting standards are sets of rules, procedures and principles which form the backbone of the accounting system for any company or region. These accounting standards can be international or regional in nature, which means that their jurisdiction and scope can be variable according to region or state as well. The main attribute that is present for the accounting standards is that they are set up in order to make the performance of the business quantifiable and comparable as well as provide for an organized method of recording all the actions and financial activities undertaken by the business.
The two objectives of the accounting standards pertain to providing a system of records for all the financial transactions that take place in the company as well as to provide the business with a layout for their financial and performance data. This data is depicted in such a manner so as to enable a third party to view the statistics of the business and be able to comprehend the information in terms of performance over a period o time.