Professional Documents
Culture Documents
Concepts Conventions
e.g.
A director͛s private car should
not e included in the fixed
assets of the company.
Going concern concept
e.g.
Fixed assets are
shown at cost less
accumulated
depreciation.
Money measurement concept
e.g.
Accounting doesn͛t tell how good the
quality of employees͛ skills are
although this is important for the
success of a usiness.
=
E.g.
Provision for dou tful de ts
should e deducted from
de tors in alance sheet.
Äisclosure
E.g.
Äepreciation method of
certain fixed assets once
adopted should e used in
the following years.
Materiality
e.g.
A stock of stationery
worth Ös.10 should
e treated as an
expense when it was
ought.