Accounting Principles and Standards

• Accrual basis of accounting
• Revenue recognition
• Historical cost
• Matching
• Materiality
• Conservatism
• Economic Entity
• Going Concern
• Monetary Unit
• Full disclosure
• Consistency
• Objectivity

• Establish a framework that guides accountants in recording and reporting financial information
• Fundamental rules and concepts that apply to accounting in general
• These principles provide the framework on which more detailed accounting standards are based

• Relevant
• Faithfully represent what it purports to

• Verifiable
• Comparable
• Understandable
• Timely

Specify HOW transactions and other events are to be recognized, measured, presented, and disclosed in the financial statements