Accounting is a practical subject. But the theory base of accounting cannot be ignored. It comprises of accounting principles, standards, concepts etc, that help us understand the basics of accounting. They also bring uniformity and consistency to the financial statements. The importance of accounting theory need not be over-emphasized as no discipline can develop without a sound theoretical base. Accounting aims at providing information about the financial performance of a firm to its various users. Accounting information must be reliable and comparable based on some consistent accounting policies, principles, and practices. This calls for developing a proper theory base of accounting. The Institute of Chartered Accountants of India which is the regulatory body for the standardization of accounting policies in the country has issued Accounting Standards which are expected to be uniformly adhered to, in order to bring consistency in the accounting practices. The PowerPoint presentation will give us more details on this.

Vikrant Ojha

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