ACCOUNTING PRINCIPLES OF STUDY OBJECTIVIES
- Explain the meaning of generally accepted accounting principles and identify the key items of the conceptual framework.
this recognized set of standarts is called Generally accepted accounting principles (GAAP). “ generally accepted” means that these principles must have “substantial authoritative supports” . such support usually comes from two standard-setting bodies : the financial accounting standartsd Board(FASB), And the securities and exchange commission (SEC).The FASB conceptual framework consists of the following four items:
Objectives of financial reporting,Qualitative characteristics of accounting information,Elemment of financial statements,Operating guidelines (assumption,principles,and constraints).
- Describe the basic objectives of financial reporting.
The basic objectives financial reporting are the provide informations thats is, 1) Is useful to those making investment and credit decisions,2) Is helpful in assesing future cash flows, 3) Identifies the economic resources (assets) , the claim of those recources and changes in those recouses and claims.
- Discuss the qualitatives characteristics of accounting informations and elements of financial statement.
To be judged useful , information should prosses the following qualitative characteristics : relevance,reability , comparability and consistncy . the elements of financial statements are sets of definition that describes as the Elements of financial statements.
- Identify the basic assummptions used by accountants
The mayor assumption are : monetary units, economic entity, time periode, going concern.
- Identify the basic principles of accounting
The mayor principles are revenue recognition , matching, full disclosure, and cost
- Identify the two constraints in accounting
The mayor in constraints are materiality, and conservartism
- Explain the accounting principles used in international operations
These are few recognized worlwide accounting standards. The International accounting standart board (IASB) , is working to obtains conformity in international accounting practice