There could be many reasons why you have landed on this page, and we assure you that you will get complete information about what you are looking for. If you are students of accounting and want to know more about what is accounting principles and what are the importance of accounting principles for professionals, then you will get the answer to your query here. If you have come at the page as who are looking for some data that you can use to make your accounting assignment impressive, then also we will help you. The intention behind writing this article is to provide an academic guide to accounting students.
What are The Principles of Accounting at The Present Time?
To govern the field of accounting, the authorities associated with it made some rules and concepts that are general and applicable in various situations. All these concepts and rules are known as fundamental accounting principles and guidelines. These concepts are principles are the ground for complicated, detailed and legalistic rules of accounting. You can understand this with this example, the FASB full form Financial Accounting Standards Board uses the fundamental principles and guidelines of accounting as a base for creating their personal comprehensive and detailed set of accounting standards and rules.
The generally and accepted principles of accounting contain three key sets of rules and these are
- The fundamental guidelines and principles of accounting.
- The detailed standards and rules issued by FASB and the predecessor of this department the Accounting Principles Board (APB)
- The commonly accepted principles of the industry.
The importance of accounting principles is that, suppose if any company decide to make its financial statements public, then it is mandatory for that company to follow commonly accepted principles of accounting for preparing those statements. In addition to that, when the stock of a company is traded publicly, the federal law would need that the financial statements of that company should be audited by a public accountants not the one working with the company. Further, the management of a particular company as well as the independent accountants in this situation has to certify that entire financial statements and other notes that are related to the same have been made according to the GAAP.
In between if you are looking for more information on the topic principles of accounting to prepare an impressive assignment, then you can contact the team of BookMyEssay for help. We offer assignment writing help for accounting subject on this topic as well as many other topics, which will help in improving your grades in the assignment. The 10 basic principles of accounting are
- Economic entity assumption
- Monetary unit assumption
- Time period assumption
- Cost principle
- Full disclosure principle
- Going concern principle
- Matching principle
- Revenue recognition principle
- Materiality
- Conservatism
These are 10 important principles of accounting and each principle has an important role to play in the smooth functioning of accounting process overall.
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