U31 ACC

Financial statements can be compared only when the accounting policies are followed consistently by the firm over the period. However, changes can be made only in special circumstances.

• Consistency

• Disclosure

• Conservatism

• Materiality

This principle state that the financial statement should be prepared in such a way that it fairly discloses all the material information to the users, so as to help them in taking a rational decision.

• Consistency

• Disclosure

• Conservatism

• Materiality

This convention states that the firm should not anticipate incomes and gains, but provide for all expenses and losses.

• Consistency

• Disclosure

• Conservatism

• Materiality

This concept is an exception to the full disclosure convention which states that only those items to be disclosed in the financial statement which has a significant economic effect.

• Consistency

• Disclosure

• Conservatism

• Materiality

Every accounting process of a transaction starts with identifying and analyzing.

Under this process, all the important transactions that relate to a business

• Recording

• Procedures

• Analysis of transactions so that they can be classified to be input into system

• Summarization through preparation of financial statements and reports

involves various steps that are to be taken to maintain a good and proper account.

• Recording

• Procedures

• Analysis of transactions so that they can be classified to be input into system

• Summarization through preparation of financial statements and reports

is a standardized process that is used to perform a function within the accounting department.

• Recording

• Procedures

• Analysis of transactions so that they can be classified to be input into system

• Summarization through preparation of financial statements and reports

is an interlocking set of activities that are layered onto the normal operating procedures of an organization, with the intent of safeguarding assets, minimizing errors, and ensuring that operations are conducted in an approved manner

• Internal Control

• Operational accounting

• Code of Practice

• International Financial Reporting Standards

is the practice of minding the financial aspects of running a business, whether small or large

• Internal Control

• Operational accounting

• Code of Practice

• International Financial Reporting Standards

Written guidelines issued by an official body or a professional association to its members to help them comply with its ethical standards.

• Internal Control

• Operational accounting

• Code of Practice

• International Financial Reporting Standards