Accounting Concepts & Conventions

ACCOUNTING CONCEPTS AND CONVENTIONS BY-: PRIYASH 0129618 NIKHIL 0129626

ACNOWLEDGEMENT ,[object Object]

CONTENTS-: Accounting Concepts…………… Meaning……… Types………… Accounting Conventions………. Meaning……… Types…………. Difference B/w Accounting Concepts & Conventions…………………..

ACCOUNTING CONCEPTS -: In order to make the accounting language convey the same meaning to all people & to make it more meaningful, most of the accountants have agreed on a number of concepts which are usually followed for preparing the financial statements. These concepts provide a foundation for accounting process. No enterprise can prepare its financial statements without considering these concepts.

1) BUSINESS ENTITY CONCEPT ,[object Object],[object Object],[object Object],[object Object]

2) MONEY MEASUREMENT CONCEPT ,[object Object],[object Object]

3) GOING CONCERN CONCEPT ,[object Object],[object Object],[object Object]

4) ACCOUNTING PERIOD CONCEPT ,[object Object],[object Object]

[object Object],[object Object]

5) HISTORICAL COST CONCEPT ,[object Object],[object Object],[object Object]

JUSTIFICATION FOR HISTORICAL COST CONCEPT ,[object Object],[object Object],[object Object],[object Object]

DRAWBACKS OF HISTORICAL CONCEPT ,[object Object],[object Object]

6) DUAL ASPECT CONCEPT ,[object Object],[object Object],[object Object],[object Object]

7) REVENUE RECOGNITION/REALISATION CONCEPT ,[object Object],[object Object],[object Object],[object Object],[object Object]

8) MATCHING CONCEPT ,[object Object],[object Object]

Following points must be considered while matching costs with revenue-: ,[object Object],[object Object],[object Object],[object Object]

9) ACCRUAL CONCEPT ,[object Object],[object Object]

10) OBJECTIVITY CONCEPT ,[object Object]

11) TIMELINESS ,[object Object],[object Object]

12) COST BENEFIT PRINCIPLE ,[object Object]

ACCOUNTING CONVENTIONS ,[object Object]

1) CONVENTION OF FULL DICLOSURE ,[object Object],[object Object],[object Object]

2) CONVENTION OF CONSISTENCY ,[object Object],[object Object],[object Object]

3) CONVENTION OF CONSERVATISM ,[object Object],[object Object],[object Object]

4) CONVENTION OF MATERIALITY ,[object Object],[object Object],[object Object]

DIFFERENCE B/W CONCEPTS & CONVENTIONS Biasness in adoption No space for personal biasness in the adoption Biasness No uniform adoption Uniform adoption Uniformity Guidelines based upon customs or usage By law Established ACCOUNTING CONVENTIONS ACCOUNTING CONCEPTS BASIS

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