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ACCOUNTING STANDARDIZATION - Coggle Diagram
ACCOUNTING STANDARDIZATION
Accounting principles
Accrual basis
Income and expenses are recognized when generated
Going concern
The entity will continue operating
Consistency
Comparability of information
Historical cost
Assets recorded at acquisition cost
Sufficient disclosure
Information necessary to understand the financial position
Chart of accounts
Hierarchical structure of accounts
Assets
Liabilities
Equity
Income
Expenses
Recording and classification of transactions
Accounting definitions and relationships
Asset
Economic resources of the company
Liability
Obligations of the company
Equity
Difference between assets and liabilities
Income
Increases in economic benefits
Expenses
Decreases in economic benefits
Net result
Difference between income and expenses
Valuation rules
Measurement and valuation of accounting elements
Historical cost
Acquisition or production cost
Fair value
Exchange value under market conditions
Net realizable value
Estimated selling price less selling costs
Present value
Future cash flows
Amortization and depreciation
Asset cost over its useful life