Qualitative characteristics & accounting principles slide show game

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1. Qualitative Characteristics & Accounting Principles

2. QUALITATIVE CHARACTISTICS ACCOUNTING PRINICPLES

3. QUALITATIVE CHARACTERISTICS (CURR) Comparability Understandability Relevance Reliability Back

4. COMPARABILITY Reports should be able to compared over time through the use of consistent accounting procedures Back

5. UNDERSTANDABILITY Reports should be presented in a manner that makes it easy for the user to comprehended their meaning. Back

6. RELEVANCE Reports should include all information which is useful for decision-making Back

7. RELIABILITY Reports should contain information verified by source document evidence so that it is free from bias Back

8. ACCOUNTING PRINCIPLES Entity Principle Going concern principle Reporting period principle Historical Cost principle Consistency principle Conservatism principle Monetary principle Back

9. ENTITY PRINCIPLE The business is separate from the owner and other entities, and its records should be kept on this bias Back

10. Going concern principle The life of the business is assumed to be continuous, and its records are kept on that basis Back

11. Reporting period principle The life of the business must be divided into ‘periods’ of time to allow reports to be prepared, and the accounting records should reflect the reporting period in which a transaction occurs Back

12. Historical Cost principle Transactions should be recorded at their original purchase price, as this value is verifiable by source documents evidence. Back

13. Consistency Principle the business should use the same accounting methods to allow for the comparison of reports from one period to the next Back

14. Conservatism Principle Losses should be recorded when probable, but gains only when certain so that liabilities and expenses are not understated and assets and revenues are not overstated Back

15. Monetary Principle All items must be recorded and reported in the currency of the country of location where the reports are being prepared Back