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Finance & Accounting
Pages 5 (1255 words)
Name: Institution: Professor: Date: Accounting standards The creation of accounting standards was as a result of the great depression in the United States where much money was lost. International Accounting Standards (IAS) sets standards in the accounting sector to ensure that there is uniformity in the accounting industry.
The paper will look at two standards by the IAS, which are the IAS 16 and IAS 38 regarding non-current assets. This paper attempts to analyze the standards that IAS sets regarding accounting of non-current assets. It sets these guidelines on how organizations and companies should handle both tangible and intangible non-current assets. IAS is responsible for setting international auditing standards so that they act as guidelines for auditors and accountants to follow regarding non-current assets (Kirk, 234). Each part in the accounting profession has its own standards as a guide on how to handle it. For instance, handling plant and machinery under IAS 16 is different from dealing with intangible non-current assets under IAS 38. This creates a form of independence when dealing with various aspects in the accounting process. IAS standards on Property, plant, and equipment IAS 16 defines handling of property, plant and equipment which is different from IAS 38 which defines handling of intangible assets in financial statements. Property, plant and equipment are all fixed tangible assets; therefore, adoption of a common method when dealing with them in the accounting process. ...
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