Accounting Principles and Concepts

A reporting period which starts on January 1 and ends on December 31 of the same year.

• Interim Period

• Calendar Period

• Fiscal Period

• Accounting Period

Tasked with collecting national taxes and administering the provisions of the Tax Code.

• BIR

• SEC

• CDA

• DTI

Under this concept, exercising accountant observes some degree of caution when exercising judgments needed in making accounting estimates under conditions of uncertainty.

• Stable Monetary Unit

• Separate Legal Entity

• Prudence

• Accrual Basis

Referred as the generally accepted accounting principles (GAAP).

• Principles

• Concepts

• Assumptions

• Standards

Information is __________ if it is presented in a clear and concise manner.

• Timely

• Understandable

• Complete

• Verifiable

Information is not manipulated to increase its favorability decrease its unaffordability.

• Completeness

• Neutrality

• Free from error

• Comparability

Tasked with regulating corporations, including partnerships.

• BIR

• SEC

• CDA

• DTI

These are the characteristics that make information useful to users.

• Fundamental

• Verifiability

• Enhancing

• Timeliness

Under this concept, assets, liabilities, equity, income and expenses are stated in terms of a common unit of measure, which is the peso in the Philippines.

• Stable Monetary Unit

• Separate Legal Entity

• Cash Basis

• Accrual Basis

Information is ___________ if it can help users identify similarities and differences between different sets of information.

• Timely

• Verifiable

• Comparable

• Understandable