Read below DK Goel Solutions Class 11 Chapter 5 Accounting Standards and International Financial Reporting Standards (IFRS). These solutions have been prepared based on the best book and the latest DK Goel Accountancy book for Class 11 issued for this academic year.

DK Goel Solutions Class 11 Chapter 5 gives a brief about Accounting Standards its meaning, advantages, disadvantages, and objectives, International Financial Reporting Standards (IFRS) – all rules and regulations required for a company to draft the financial statements.

The chapter also includes good amount of questions which are very well developed and are very helpful to understand the concepts for Class 11 Students of Accountancy. These solutions are free and will help you to prepare for Class 11 Accountancy.

Accounting Standards and IFRS DK Goel Class 11 Accountancy Solutions

Students can refer below for solutions for all questions given in your DK Goel Accountancy Textbook for Class 11 in Chapter 5

Question 1: 

Solution 1: Accounting standards are written policy documents covering the aspects of recognition, measurement, treatment, presentation and disclosure of accounting transactions in financial statements.

Question 2: 

Solution 2: Below are the two nature of accounting standards:-

(i) Accounting rules, accounting principles, accounting concepts and guidelines of the process of recording transaction all are tell by accounting standards.

(ii) From accounting standards we can easily understand financial statements.

Question 3: 

Solution 3: The two advantages of accounting standards are:-

(i) Accounting standard help in eliminating variations in accounting treatment to prepare financial statements.

(ii) Accounting standard facilitate comparability between financial statements of inter and intra companies.

Question 4:

Solution 4: Below are the main objectives of Accounting Standards:-

1.) Reduce different accounting procedures and activities to the extent practicable, with the goal of removing them.

2.) Promote a greater awareness of financial statements.

3.) Understand the adoption and execution of important accounting policies.

4.) Allowing meaningful comparison of two or more companies’ financial statements.

5.) Improving financial reporting reliability.

Question 5:

Solution 5: In the basis of financial statements, significant economic decisions are made. There is a need for a clear way of determining which items require identification and calculation, and how information is portrayed in the financial statements, in order to prevent changing statistics in the financial reports.

IFRS also tends to eliminate material abuse of financial reporting mistakes.

Question 6: 

Solution 6: Below are the two basic objectives of accounting standard:-

1.) Reduce different accounting procedures and activities to the extent practicable, with the goal of removing them.

2.) Promote a greater awareness of financial statements.

Question 7: 

Solution 7: To promote consistency and uniformity in the accounting process, accounting standards are required.

Question 8:

Solution 8: IFRS stands for International Financial Reporting Standards.

Question 9:

Solution 9: The values are followed by adopting accounting standards are:-

(i) Reliability

(ii) Comparability

(iii) Clarity

(iv) Consistency

Question 10: 

Solution 10: Below are the reasons of International Financial Reporting Standards (IFRS):-

1) It is important to make a globalized analysis of the financial statements of corporations.

2) Accountants and auditors in countries implementing IFRS are in a position to offer their services.

3) Time and resources will be saved with the use of IFRS accountants and auditors.

4) There could be improved preparation and implementation for companies using IFRS.