Accounting · Accounting Standards
Why are Accounting Standards described as functioning in a mandatory or binding manner in the field of accounting?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1They establish mandates that bind accountants to follow prescribed practices without personal discretion in certain areas.✓
- 2They mandate the universal application of the written-down value method for depreciation across all enterprises.
- 3They completely prohibit the disclosure of contingent assets in financial reports regardless of the probability of inflow.
- 4They possess the authority to override existing legal frameworks and statutes during financial reporting.
Correct answer
They establish mandates that bind accountants to follow prescribed practices without personal discretion in certain areas.
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