What is accounting standards ?
Accounting standard is a set of rule for all companies so that inverster and user of balance sheet and profit & loss account take a proper decision. Accounting standard set a uniform in financial information of all companies so that user of financial statement can not be mislead.
According to companies Act 2013 Section 2 (2) defines means the standards of accounting orany addendum thereto for companies or class of companies referred to in section 133 .
Valuation of inventories
One company include GST in total value
another company exclude in GST in total value
One company include damaged inventories value
another company exclude damaged inventories value
If different company valuation of inventories in different style profit & loss affect accordingly.