Introduction
Financial statements are used to make economic decisions. For example, the investors and creditors make their resource allocation decision based on the financial statements. It is critical that they are able to compare financial information of different companies. Accounting Bodies all over the world have tried to achieve some uniformity in the accounting policies by prescribing certain accounting standards in order to narrow the range of alternatives available to an organization regarding the collection and presentation of accounting information. These standards serve as broad and specific guidelines that companies should follow when measuring, reporting and disclosing the information in the financial statements and other documents which form a part of financial statements.
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