Conflicts between Accounting Concepts? (Acc & Finance)

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ahyak
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Concepts such as, Going Concern, Accruals, Prudence and Consistency.
I understand in a general way but can't get to the actual point of it, can anyone help explain the conflicts simply please?

Thanks!
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Enoxial
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Just keep them in mind, they aren't going to be much useful.
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ahyak
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this may come up as an essay question in my exam
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DJKL
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(Original post by ahyak)
Concepts such as, Going Concern, Accruals, Prudence and Consistency.
I understand in a general way but can't get to the actual point of it, can anyone help explain the conflicts simply please?

Thanks!
You need to think about how adopting one of the policies could, in certain circumstances, be at odds with one or more of the others

Example-Consider how say preparing accounts on the basis of going concern (re valuation approach) might be at odds with the concept of prudence. Using going concern assumes continuing use of say assets/ continuing ability to service liabilities. But if the business is not a going concern (Tech change/ new industry practices, whatever) then is it still prudent to value assets as if they will give enduring benefit. What does prudence say about asset valuation and measuring liabilities?

Accountancy is not merely a set of rules, thought and judgement need to be applied if accounting statements are to have any real meaning.

Therefore whilst the fundamental concepts which used to be (may still be) in SSAP2 may appear somewhat irrelevant/imprecise, they actually underly the philosophy of accounting thought. If there was not particular guidance as to how to present a particular aspect of accounts, if you needed to determine for yourself the best approach without some FRS or similar for guidance, then these four concepts are where you would go to determine the most suitable approach; they are the building blocks of accounting thought.
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AccountingTutor
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Accounting Tutor with an Exceptional Ability to Transfer Knowledge

I tutor undergraduate Accounting students, specializing in Financial Accounting 1 and 2, and Intermediate Accounting 1 and 2. On a case-by-case basis, I tutor upper-level accounting courses. I also teach in group settings at discounted rates.For one-on-one sessions, I offer completely individualized tutoring - according to to my student's strengths and weaknesses. You'll find that I have a unique ability to assess your knowledge gaps and develop ways to close those gaps. Reach out for help. '

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