2. Materiality:
To help the users with their decisions
Includes informations which affects the decisions of the users.
Information is material either due to the amount or importance of
event.
Eg. i) Remuneration paid to the excutives & directors is material.
3. Modified Accounts
It is the shortened versions of full accounts.
Small/Medium sized companies can file these with the ROC.
4. Money Measurement:
States that a business should record the transaction if it can be
expressed in terms of money.
focus on quantitative information rather than qualitative.
Following items cannot be records in accounting transactions:
• Employee’s skill level
• Product durability
• Employee’s working conditions
5. Minority Interest
Portion of equity ownership in a subsidiary not attributable to the
parent company.
Company has a controlling interest greater than 50% but less
than 100%.
6. Book Value:
The value of an asset according to its balance sheet account
balance.
Original Cost Less Depreciation
Example: Book Value = Cost of the Asset - Depreciation
Rs. 90,000 = Rs. 100,000 – Rs. 10,000
