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Accounting Principles & Concepts (Conceptual Framework (Qualitative…
Accounting Principles & Concepts
Conceptual Framework
Elements
- A = L + OE(Revenues & Expenses)
Qualitative Characteristics
Other Characteristics
Faithful representation
Substance over form
Neutrality
Prudence
Completeness
Timeliness
Consistency
Materiality
Verifiability
Relevance
Reliability
Comaparability
Consistency
Objective of Financial Statements
Provide information on the
financial position, performance and changes in said position,
for the sake of the users to
make decisions
Operating Guidelines
Assumptions
Monetary Unit
Economic/business entity
Time interval
(Going concern)
Principles
Revenue recognition
Expense recognition
Full Disclosure of Principle
Cost principle
Constraints
Materiality
Conservatism
Guidelines on how financial info will be measured, processed and communicated.
How will FS be useful to users