Accounting Essay Example | Topics and Well Written Essays - 1000 words - 11

Accounting - set about ExampleConsistency can only be maintained in the companies throughout, if the accounting standards are itself consistent. eventide though the establishment of the accounting standards has eradicated the ambiguity to some extent but it does not provide such(prenominal) uniformity in the judgmental matters. The rules and principles must be given much brilliance in this respect as well as their application, in order to maintain the coherency of the application of the accounting standards. In addition, judgmental matters must overly be dealt with great regard such that the basis is not distorted. solo the internal consistency cannot assure the consistency of the accounting standards which is because the principles do not guide the managers in judgmental matters which in the end becomes a hurdle in the coherency of the accounting standards.There is vast importance of the consistency of the Accounting standards used all over the globe. The rapid change is also resulting is ambiguity on part of the investors and other users of the fiscal statements which must be eradicated.The boards have also acknowledged the extremity of coherence of the accounting standards as well as the accounting policies which would benefit the creditors, investors and other users of the financial statements. (Helium, 2010)It is very infallible that all the financial statements give a familiar representation of the policies and procedures applied as well as the results reached, which would lead to the user of the financial statement to reach a better conclusion. There is an immense need for the consistency of the accounting standards application in areas of revenue and expenses through internal consistency. (Mourik)The IASB has also taken a vast initiative in this regard in order to urge the makers of the financial statements to invoke consistency in their financial statements. IFRS 8, in this regard has stated All the entities