Accounting Concepts

Business Entity Concepts

Accrual Concept

Money Measurement Concept

Cost Concept

Full Disclosure Concept

Matching Concept

Accounting Period Concept

Materiality Concept

Consistency Concept

Conservation Concept

Going Concern Concepts

Recognition Concept

Dual Aspect Concept

separates the business from its owner

concerned the owner and the business are two separates entities

allows costs and revenues to be allocated to future accounting periods

assumes a business will continue to trade for forseeable future

provides that accounting for a business should be fair and reasonable

same methods should be used and followed over the years which use to calculate the value such as inventory and depreciations

recognizes expenses as they happen in generation of revenue

recognizes revenue as the goods are delivered to the customer

states that the revenue and the expenses incurred to earn the revenues must belong to the same accounting period

a GAAP relating to the importance or significance of the account or transaction

only records the transaction which can be expressed in monetary terms

In general, the time period reflected by a set of financial statements

In terms of taxation, it is 12 month period a taxpayer uses to determine his or her income tax

relevant to business operation and decisions can be grouped on the basis of their nature and propose

mean the a record of each transaction made in two separate account

it must be both earned and realized for revenue to be recognized

provide information that is sufficient importance to influence the judgement and decisions of an informed user