Understandability

It is important accounting concept, which means that financial data

presented in the financial statements must be clear. It has to be ensured
that users without any specific accounting knowledge and specific education
are able to understand the information, which is provided.

In case there are certain difficult or complex items included in the financial
statements, they should be explained in the notes to the financial
statements.
Materiality

The next accounting concept is materiality. Only material items are included
in the financial statements, which might have an impact on the decisions
made by the users of the financial statements.

Immaterial or minor items are grouped together and it is not necessary to

disclose them separately. It is important to remember that disclosure and
presentation of immaterial items is costly comparing to the usefulness of
such data to the users of the financial statements.

Relevance & Reliability

The other two accounting concepts applicable to preparation of financial
statements is relevance and reliability. The essence of this concept is that
only relevant information, which might be useful for the users of financial
statements should be presented thereof. Information presented in the
financial statement also should be reliable.

All economic substance of the event, transaction must be reflected. Financial

statements must include complete records about the business, its results of
operations, assets and liabilities and equity.

Comparability

It has to be ensured that users of the financial statements are able to

compare financial data about the business with other businesses and also
across several accounting periods covering the same business. Therefore the
notes to the financial statements become very important and must explain
any reasons or circumstances, if there are any, why such comparison is not
possible.
Substance Over Form & Completeness

One more accounting concept is substance over form. Application of this

concept leads to the requirement that the real essence of the transaction
must be reported and it is essential to disclose its real economic reality, but
not its legal form. Also it is essential to comply with the completeness
concept, i.e. all items might be complete.  The substance behind this
requirement is that if some information, which might be important to the
users of financial statements, is not completely disclosed, financial
statements might be misleading to their users and wrong decisions might be
made based on such misleading data.
Neutrality & Faithful Presentation

The next accounting concept is neutrality, which means that financial

statements must be free from errors or from other missions. Financial
statements cannot be prepared with the purpose to influence certain
decisions, i.e. they might be neutral. Users of the accounting data should
have the ability or possibility to make their own decisions based on that
information.

One more accounting concept is faithful presentation, which means that

transactions and business facts must be presented faithfully. This concept is
closely related to the reliability, i.e. it must be ensured that information
provided in the financial statements is reliable. Only if this is a case the
users of financial statements can make correct decisions based on the
financial data provided thereof.
Refer this: https://www.dynamictutorialsandservices.org/2019/04/financial-statement-analysis-
multiple.html