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11 Cards in this Set
- Front
- Back
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Comparability
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Financial reports should be prepared in a consistent manner so they can be compared from year to year
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Relevance
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All relevant information should be disclosed in general purpose accounting reports.
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Reliability
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Ability to check accounting information against business documents
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Understandability
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Accounting information should be presented in a simplified, understandable manner
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conservatism
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cautious approach to accounting, stay on the 'safe side'
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consistency principle
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accounting methods should be applied consistently from one reporting period to the next
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entity principle
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only relevant items be reported for a business entity, therefore excluding any personal transactions of the owner
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going concern principle
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business will continue to operate indefinitely into the future
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monetary unit principle
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measurement of financial events in Australia, is in Australian dollars
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reporting period principle
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a period of time over which financial events are recorded and reported
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historical cost
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original cost of an item at the time it is purchased
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