Accounting Standards provides the framework for the recording of the transactions and their presentation on financial statement. Accounting Standard deals with the following issues.

• Recognition of events and transactions in the financial statements,
• Measurement of these transactions and events,
• Presentation of these transactions and events in the financial statements.
• Disclosure of the events and transactions which are required to understand the financial statement to the the public at large and the stakeholders and the potential investors in particular, to get an insight into what these financial statements are trying to reflect and thereby facilitating them to take prudent and informed business decisions.