This document provides an overview of accounting concepts, principles, and conventions covered in training modules 4 and 5. It defines accounting concepts as the assumptions used to prepare financial statements, and principles as guidelines that explain accepted practices. Conventions are adopted principles derived from usage. The document then lists common accounting concepts like money measurement and matching, as well as fundamental assumptions, characteristics of financial statements, and the purposes of creating financial statements.

1. ACCOUNTING CONCEPTS, PRINCIPALS &
CONVENTIONS
4th & 5th Training Module
Accounting Concepts:-
Assumptions for the preparation of financial statements.
 For ease in the understanding of our financial statements
 Accountancy is based on these accounting assumptions.
 The accounting concepts are uniform and should be used by each.

2. ACCOUNTING CONCEPTS, PRINCIPALS &
CONVENTIONS
4th & 5th Training Module
Accounting Principles:-
Guidelines associated with theory.
 Procedure for explaining the practice followed.
Guide for selection of conservations & procedures.

3. ACCOUNTING CONCEPTS, PRINCIPALS &
CONVENTIONS
4th & 5th Training Module
Accounting Conventions:-
Adopted Accounting Principles.
 Derived by usage & practice.
Need not have universal application.

4. ACCOUNTING CONCEPTS, PRINCIPALS &
CONVENTIONS
4th & 5th Training Module
Accounting Concepts:-
1. Entity Concept
2. Money Measurement Concept
3. Periodicity Concept
4. Accrual Concept
5. Matching Concept
6. Going Concern Concept

5. ACCOUNTING CONCEPTS, PRINCIPALS &
CONVENTIONS
4th & 5th Training Module
Accounting Concepts:-
7. Cost Concept
8. Realisation Concept
9. Dual Aspect Concept
10. Conservatism Concept
11. Consistency Concept
12. Materiality Concept

6. ACCOUNTING CONCEPTS, PRINCIPALS &
CONVENTIONS
4th & 5th Training Module
Fundamental Accounting Assumptions:-
i. Going Concern
ii. Consistency
iii. Accrual

7. ACCOUNTING CONCEPTS, PRINCIPALS &
CONVENTIONS
4th & 5th Training Module
Financial Statements:-
i. To keep systematic records to ascertain financial performance and financial
position of entity.
ii. To communicate the relevant financial information to the interested users.
iii. To show the result of the business activities.
iv. Prepared by following various accounting concepts, principles & conventions.

8. ACCOUNTING CONCEPTS, PRINCIPALS &
CONVENTIONS
4th & 5th Training Module
Characteristics of Financial Statements:-
i. Understandability
ii. Relevance
iii. Reliability
iv. Comparability
v. Materiality

9. ACCOUNTING CONCEPTS, PRINCIPALS &
CONVENTIONS
4th & 5th Training Module
Characteristics of Financial Statements:-
vi. Faithful Representation
vii. Substance over Form
viii. Neutrality
ix. Prudence
x. Full, Fair & Adequate Disclosure
xi. Completeness

10. Thank You

11. I went to the Lord’ Clinic to have
my routine check-up and I
confirmed I was ill:

12. When God took my blood pressure, He saw I was low in
tenderness.

13. When he read my temperature, the thermometer
registered 40º of anxiety

14. Me hizo un electrocardiograma y el diagnóstico fue que necesitaba varios by
pases de amor, porque mis arterias estaban bloqueadas de soledad y no
abastecían a mi corazón vacío.
He ran an electrocardiogram and found that I needed several
“love bypasses” since my arteries were blocked with loneliness
and could not provide for an empty heart.

15. I went to orthopedics, because I could not walk by my brother’s
side and I could not hug my friends, since I had fractured myself
when tripping with envy.

16. También me
encontró
miopía, ya que
no podía ver
más allá de las
cosas
negativas de mi
prójimo.
He also found I was shortsighted, since I could not see
beyond the shortcomings of my brothers and sisters.

17. When I complained about deafness, the diagnostic was
that I had stopped listening to God’ voice talking to me
on a daily basis.

18. For all of that, God gave me a free
consultation thanks to his mercifulness, so
my pledge is to, once I leave this clinic, only
take the natural remedies he prescribed
through his words of truth:

19. Every morning,
take a full glass of gratitude

20. When getting to work,
take one spoon of peace

21. Every hour,
take one pill of patience, one cup of brotherhood and one
glass of humility

22. When getting home,
take one dose of love

23. When getting to bed,
Take two caplets of clear conscience

24. Do not give in into sadness or desperation for what you
are going through today.
God knows how you feel......
God knows exactly and with perfection what is being
allowed to happen to you in your life at this precise
moment.

25. God’s purpose for you is simply perfect.
He wants to show you things that only you can understand by living what you are
living, and by being in the place you are now.

26. May God give you...
For every storm, a rainbow,
For every tear, a smile,
For every care, a promise,
And a blessing in each trial.
For every problem life sends,
A faithful friend to share,
For every sigh, a sweet song,
And an answer for each prayer.