AS OCR Accounting Concepts (Prudence, consistency...)

    • Thread Starter

    Can anyone write all the accounting concepts and their definitions necessary for AS ? or at least show me where i can find them =)

    Going Concern - financial statements assume that the business will still be in existence next year

    Consistency - use the same method for your accounts every year for comparison (e.g. same depreciation method)

    Prudence - never assume you will make a profit on an item, but always record an expected loss

    Accruals - match every expense to the revenue in any one year (e.g. account for credit payments that aren't owed until next year, and deduct any prepayments)

    Business Entity - basically separates business exp from personal exp

    Materiality - don't include negligible fixed assets (something small like a stapler)

    Objectivity - ensure all accounts are neutral and unaffected by opinion

    Dual Aspect - ensure every transaction has a double entry

    This might help
    • Thread Starter

    oh thank you very much
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