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Accounting standards are needed so that financial statements will fairly and consistently describe financial performance. Without standards users of financial statements would need to learn the accounting rules of each company and comparisons between companies would difficult.
Accounting standards used today are referred to as Generally Accepted Accounting Principles (GAAP). These principles are "generally accepted" because an authoritative body has set them or the accounting profession widely accepts them as appropriate.
However, form the above we need the accounting standard for companies to control their financial affairs also for showing their profits to the market and shareholders.
The advantages of accounting standards:
Good corporate governance ensures that companies perform butter and have a better relationship with its stakeholders.
The paper practice of accounting standards is very significant as it leads to the effective disclosure and consequently good corporate governance programmers.
Hence, the practice of proper accounting standards is more relevant issue of good corporate governance in the present competitive era as the standards provide a useful mechanism to restructure the core corporate values.
In this context, the paper attempts to discuss the practice of accounting standards for good
corporate governance, as it is regarded as one of the important relevant issues of corporate governance, with an objective to make accounting standards useful to ensure better disclosure, for good corporate governance.
The empirical results revealed that the most of the select companies perceived the relevance of standards for good corporate governance and complied with twenty to twenty five accounting standards with varied treatments of items, which jeopardised the comparability and left the scope for personal discretion and confusion.
It is concluded that there is a necessity of stringent and uniform standards, wide participation, hormonisation of related laws for ensuring the true and fair view of business, thus good corporate governance.
In my essay I can't find any disadvantages for the accounting standards.
In recent years, the Oman economy has undergone a number of reforms, resulting in a more market-oriented economy.
Particularly, the financial impetus extended by the Sultanate of Oman had signaled the beginning of a positive trend.
The size of Oman industry is becoming much bigger and the expectations of various stakeholders are also increasing, which can be satisfied only by the good Corporate Governance.
The importance of good Corporate Governance has also been increasingly recognized for improving the firmââ‚¬â„¢s competitiveness, better corporate performance and better relationship with all stakeholders, because of which the Oman industries have obliged to reform their principles of Governance.
STANDARDS IN OMAN:
The Standing Interpretation Committee of the IASC, Commercial Companies Law of the
Sultanate of Oman and Capital Market Authority of the Sultanate of Oman, the prime
responsible bodies, are working for the adoption and improvement of accounting standards. The
financial statements in Oman have been prepared in accordance with International Accounting
standards issued by the International Accounting Standards Committee.
Though the Oman industry has been following all the International Accounting Standards, in
Practice, some of them are not free from criticism due to certain inherent weaknesses. The
Practices of these standards in the Oman industries and the gaps are discussed in what follows
With a view to strengthen them for ensuring the good Corporate Governance.
In Oman, though the financial statements have been prepared in accordance with International
Accounting standards issued by the International Accounting Standards Committee (IASC),
Interpretations issued by the Standing Interpretation Committee of the IASC and the requirements of the Commercial Companies Law of the Sultanate of Oman and the disclosure
Requirements set out in the rules for disclosure issued by the Capital Market Authority of the
Sultanate of Oman, the disclosure is inadequate and is a negative phenomenon to a country
Which wishes to be strengthened further, because it cannot hope to tap the GDR market with?
Inadequate financial disclosures, since the more transparent activities of a company governed by
The proper accounting standards, the more accurately will its securities be value.
For example, I choose companies in Oman in same business (services) there are the first, Oman Mobile and the second the Nawras for communication. If we need to compeer about the strength of their income and net profit, in the end of the year we use balance sheet and profit and loss statements. Because, these statements are international and shows effects numbers of their earns for the year, and easily to comparability between them.
There are international principles, for the business marketing in the world. But any country also put extra roles to solve any problems may which face the companies. In other wise these rules analyses the business in the market. That's good for the customer to get a good services from different special private companies. In Oman there is a good rules to discipline companies also to protective the customers.
The principles very important for the accounting standards that's for necessary for companies to do the international statements. From that, these companies showing their profits in the news paper and the website.
In my essay for accounting standards and the principles. First, write about accounting standards and the advantages and disadvantages. Then, write about the standards in the Sultanate of Oman also, I write for tow companies and how they can compeer between them from international statement. Finally, I write about the principle and these rules and how these rules can analyses the business between the companies in the market.
In this essay I collect some information data from many sources like some boxes, handouts and internet.