GAAP principles

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Accounting reports should always portray the most realistic

figures and values.

• Double-entry rule

• Consistency principle

• Prudence principle

• Concept of materiality

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The twelve-month period over which financial reporting is

done.

• Financial year

• Financial month

• Double-entry rule

• Prudence principle

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The business operates separately from the owner and has its

own set of financial records.

• Consistency principle

• Business entity principle

• Materiality principle

• Matching principle

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Income and expenses in the year in which they were

earned or incurred.

• Matching principle

• Concept of materiality

• Business entity rule

• Consistency principle

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Non-current assets are shown at the original

cost price.

• Financial year

• Going concern principle

• Concept of materiality

• Historical cost principle

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Depreciation must be written off each year using the same

method.

• Double-entry principle

• Business entity rule

• Going concern principle

• Consistency principle

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The entity will continue to operate in the foreseeable future.

• Prudence

• Going concern principle

• Materiality concept

• Historical cost principle

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Income and expenses in the year in which they were

earned or incurred.

• Prudence principle

• Matching principle

• Double-entry principle

• Consistency rule

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Something that does not have a significant impact will be

corrected in the following year.

• Historical cost rule

• Going concern principle

• Matching principle

• Materiality principle

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Generally accepted standards for reporting over the financial

situation of an entity.

• IFRS

• IFM

• SAICA

• SARS