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! Accounting Standard
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|}Accounting is social science and is quite subjective. It is based on Accounting Concepts which give broad guidelines how accounting transactions/events are identified, recognized, classified, summarized, processed and disclosed. To limit these broad guidelines so that some sort of uniformity can be brought and creditworthiness of Financial Statement is build, various Accounting Bodies are empowered to issue guidelines based on Accounting Concepts, many of them are mandatory in nature. These guidelines are limiting the alternatives available in choosing the accounting policy and accounting treatment. These rules are known as Accounting Standards. Accounting Standard is an authoritative statement of how particular types of transaction and other events should be reflected in financial statements. Compliance with accounting standards will normally be necessary for financial statements to give a true and fair view. Each country has empowered accounting body/bodies to issue Accounting Standards. International/National body like IFRS, FASB, ICAI issue such Accounting Standards. Due to globalisation, national Standards are now tends on to similar line of IFRS. The local ASs are knowns as Generally Accepted Accounting Principles. Accounting Standard provide credit to the Accounting system. Many country's law provide legal sanction to follow ASs. In India, Companies Act 1956, sec. 211 asks Board of Director to ensure that all AS issued by ICAI which are mandatory should fully comply. ( () 13:35, 4 January 2008 (UTC))

Compliance with Accounting Standard is part of Corporate Governance in India and many other country. OECD has laid down principles to make AS more objective and reliable. As per OECD, Accounting standards are methodologies and disclosure requirements for the preparation and presentation of financial statements. Accounting standards are usually developed within the institutional and professional framework of a country, and promulgated by regulatory or professional accountancy bodies. Standards can also be backed by ethical standards issued by an accountancy body that provide for professional sanctions against members in the event of non-compliance. Accounting standards may also be developed in harmony with, or as an adaptation of, an internationally recognized set of benchmark standards such as International Accounting Standards (as promulgated by the International Accounting Standards Committee), or the U.S. GAAP (General Accepted Accounting Principles as promulgated by the Financial Accounting Standards Board in the United States of America) or Indian GAAP in India. US GAAP is rule based while Indian GAAP is principle based. ( () 13:44, 4 January 2008 (UTC))

In modern business world 'corporate governance' is a buzz word. Modern corporations use funds provided by small shareholders and the business is managed by professional. It is human tendency that the person take utmost care in managing own fund, but when he manage others fund, there may be less care taken compared to previous one. Conflict of interest is created, when there is own interest vs. corporation's interest, human tendency is to sacrifice corporation's interest and gain in his favour. CG is determining the relation in expected way, that he take same care as he is not party in interest. The accounting standards becomes important to test whether financial transactions are fair, neutral and just? The corporate responsibility begins with the directors who are the mind and soul of the organization. The Board is expected to act as conscience-keeper of the corporate vision and mission, and devise the right type of systems for organizational effectiveness and satisfaction of stakeholders. Thus, the Corporate Governance is a system of accountability primarily directed towards the shareholders in addition to maximizing the shareholders’ wealth & welfare, where the debate on disclosure/ transparency issues of Corporate Governance eventually centers around the proper Accounting Standards, their practices and issues, as the application of Accounting Standards give a lot of confidence to the corporate management and the fair disclosure would be more effective and ensure the good Corporate Governance. Thus, the study of practices of Accounting Standards is an important and relevant issue of Good Corporate Governance in the present environment, as the standards are viewed as a technical response to call for better financial accounting and reporting; or as a reflection of a society’s changing expectations of corporate behavior and a vehicle in social and political monitoring and control of the enterprise. Thus Accounting Standard is tools to implement and measure corporate governance quality.
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One of the highly rated article http://papers.ssrn.com/sol3/papers.cfm?abstract_id=712461 establishing relation between Corporate Governance and Accounting Standard is available on SSRN portal. ( () 05:56, 11 January 2008 (UTC))