‘The accounting concepts and accounting standards are generally referred to as the essence of financial accounting’. Comment.

Explanation

Financial accounting thinks about with the preparation of the money statements and provides money info to numerous accounting users. it's performed in step with the essential accounting ideas like Business Entity, cash activity, Consistency, political orientation, etc.


These ideas enable varied alternatives to treat identical dealings. for instance, there area unit variety of strategies obtainable for shrewd stock and depreciation, which may be followed by varied companies. This results in wrong interpretation of monetary results by external users because of the matter of inconsistency and incomparability of monetary results among completely different business entities.


so as to mitigate inconsistency and incomparability and to bring uniformity in preparation of the money statements, accounting standards area unit being issued in Asian country Bharat Asian country Asian nation} by the Institute of controller of India. Accounting standards facilitate in removing ambiguities and inconsistencies.


Hence, accounting standards and accounting ideas area unit referred because the essence of monetary accounting.