accounting principles and assumptions

5 accounting assumptions

1. Going concern

2. Economic entity

3. Time period

4. Monetary unit

5. Acrrual accounting

7 accounting principles and concepts

1. Cost principle

2. Full disclosure principle

3. Matching principle

4. Objectivity principle

5. Revenue recognition

6. Cost benefit relationship

7. Conservatism/prudence

Going concern

Economic entity

Time period and 2 types

Monetary unit

Acrrual accounting

Cost principle

Full disclosure principle

Matching principle

Objectivity principle

Revenue recognition

Cost-benefit relationship

Conservatism/prudence

What is conceptual framework for financial reporting

A document that summarizes the terms and concepts that underlie the preparation and presentation of financial statement

Conceptuak framework for financial reporting is an accounting standard

FRSC

Financial reporting standards council

Give at least 2 purpose of conceptual framework

Enhancing qualitative characteristics of useful financial information

Fundamental qualitativr characteristics - relevance

Faithful representation