Before the introduction of accounting standards, accounting practices varied from enterprise to enterprise — there was inconsistency and occasionally practices were inappropriate.

Intercompany and inter-period comparisons were difficult as enterprises changed accounting policies and resorted to, for example, ‘window-dressing’ and ‘reserve accounting’.

Discuss the extent to which the publication of more than 20 accounting standards has overcome these problems. Illustrate your discussion by reference to specific accounting standards.