The accounting standards allow firms to use discretion in their choice of accounting methods.

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The accounting standards provide for flexibility in accounting method,as the application of a uniform set of rules and procedures can prevent a distorted view of the company's performance and financial position.Hence,companies have some discretion in their choice of accounting method.It is the role of the directors and auditors to ensure that the company has complied with accounting standards,and that there are no errors or omissions in the financial statements.

The Accounting Standards Allow Firms to Use Discretion in Their