This document discusses key accounting principles and concepts, including:
- Accounting principles provide guidelines for sound accounting practices and procedures to record and report financial performance. They are classified into concepts and conventions.
- Key concepts include business entity, money measurement, historical cost, going concern, dual aspect, realization, accrual, accounting period, and matching.
- Key conventions include consistency, conservatism/prudence, full disclosure, and materiality. Consistency provides comparability, conservatism plays it safe, full disclosure provides all significant information, and materiality focuses on important items.
Accoutning concepts, principles and conventionsgherryta
Here are provided some details of following concepts, principles and conventions of accounting:
1. Entity Concept
2. Money Measurement Concept
3. Periodicity Concept
4. Accrual Concept
5. Matching Concept
6. Going on Concern Concept
7. Cost Concept
8. Principle of Prudence
9. Realization Concept
10. Dual aspect Concept
11. Consistency
12. Materiality
Hope, basic of these concepts is easy to understand.
Thanking you
Accoutning concepts, principles and conventionsgherryta
Here are provided some details of following concepts, principles and conventions of accounting:
1. Entity Concept
2. Money Measurement Concept
3. Periodicity Concept
4. Accrual Concept
5. Matching Concept
6. Going on Concern Concept
7. Cost Concept
8. Principle of Prudence
9. Realization Concept
10. Dual aspect Concept
11. Consistency
12. Materiality
Hope, basic of these concepts is easy to understand.
Thanking you
This PPT contains all the topics related to Financial Accounting.
This PPT is related to MBA course subject code KMBN103
Subject Name Financial Accounting and Analysis
This presentation about Accounting Principle. its include
Nature of Accounting Principles
Accounting Concepts
Business Entity Concept
Effect of adopting Business entity Concept
Money measurement Concept
Cost Concept
Going Concern Concept
Dual Aspect Concept
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
This PPT contains all the topics related to Financial Accounting.
This PPT is related to MBA course subject code KMBN103
Subject Name Financial Accounting and Analysis
This presentation about Accounting Principle. its include
Nature of Accounting Principles
Accounting Concepts
Business Entity Concept
Effect of adopting Business entity Concept
Money measurement Concept
Cost Concept
Going Concern Concept
Dual Aspect Concept
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
This presentation poster infographic delves into the multifaceted impacts of globalization through the lens of Nike, a prominent global brand. It explores how globalization has reshaped Nike's supply chain, marketing strategies, and cultural influence worldwide, examining both the benefits and challenges associated with its global expansion.
PPrreesseenntteedd bbyy:: GGrroouupp 66
GGlloobbaalliizzaattiioonn
o f
PP
oo
ll
yy
ee
ss
tt
ee
rr
RR
uu
bb
bb
ee
rr
EE
tt
hh
yy
ll
ee
nn
ee
VV
ii
nn
yy
ll
AA
cc
ee
tt
aa
tt
ee
GG
ee
nn
uu
ii
nn
ee
LL
ee
aa
tt
hh
ee
rr
SS
yy
nn
tt
hh
ee
tt
ii
cc
LL
ee
aa
tt
hh
ee
rr
CC
oo
tt
tt
oo
nn
C
o
u
n
t
r
i
e
s
I
n
v
o
l
v
e
d
Ni
k
e
h
a
s
m
o
r
e
t
h
a
n
7
0
0
s
h
o
p
s
i
n
c
o
n
t
r
a
c
t
w
i
t
h
w
o
r
l
d
w
i
d
e,
w
h
e
r
e
i
n
t
h
e
i
r
offi
c
e
s
a
n
d
i
n
d
e
p
e
n
d
e
n
t
fa
c
t
o
r
y
o
u
t
l
e
t
s
a
r
e
fo
u
n
d
w
i
t
h
i
n
t
h
e
p
r
e
m
i
s
e
s
of
ap
p
r
o
x
i
m
a
t
e
l
y
4
5
c
o
u
n
t
r
i
e
s.
AAuussttrraalliiaa
China
India
IInnddoonneessiiaa
TThhaaiillaanndd
TTuurrkkeeyy
USA
VViieettnnaamm
NNiikkee SSuuppppllyy CChhaaiinn
RRuubbbbeerr,, FFaabbrriicc
aanndd ootthheerr rraaww
mmaatteerriiaallss
Shoe
MMaannuuffaaccttuurriinngg
aanndd AAsssseemmbbllyy
MMaarrkkeettiinngg
SSppoorrttiinngg ggooooddss,,
ddeevveellooppmmeenntt
aanndd SShhooee ssttoorreess
OOnnlliinnee,, CCaattaalloogg
aanndd ootthheerr rreettaaiill
NNiikkee bbrraannddeedd
shoes
PPrroodduucctt
ddeevveellooppmmeenntt
CCuussttoommeerr nneeeeddss//wwaannttss ffeeeeddbbaacckk
NNiikk
Nike Supply Chain
Globalization of Nike
Nike Manufacturing Process
Rubber Materials Nike
Ethylene Vinyl Acetate Nike
Genuine Leather Nike
Synthetic Leather Nike
Cotton in Nike Apparel
Nike Shops Worldwide
Nike Manufacturing Countries
Cold Cement Assembly Nike
3D Printing Nike Shoes
Nike Product Development
Nike Marketing Strategies
Nike Customer Feedback
Nike Distribution Centers
Automation in Nike Manufacturing
Nike Consumer Direct Acceleration
Nike Logistics and Transport
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
1. Mahesh Chandra Sharma
Associate Professor
Department of Commerce
Shaheed Bhagat Singh Evening College
(University of Delhi), Delhi
1
2. Nature of Accounting Principles
Accounting principles are general guidelines to
establish standards for sound accounting practices and
procedures in recording and reporting financial
performance and status of a business.
Derived from experience and reason.
To ensure uniformity and easy understanding of
accounting information.
These principles can be classified into two categories
(i) Accounting concepts; and (ii) Accounting
conventions.
2
3. Accounting Concepts
Accounting concepts are defined as basic assumptions
on the basis of which financial statements of a
business entity are prepared.
They are used as a foundation for formulating various
accounting methods and procedures for recording and
presenting the business transactions.
An assumption is something which is accepted as true
which may not be true in real life.
3
4. Business Entity Concept
For the purpose of accounting, it is assumed that the
business has a separate and distinct entity from its
owner(s) and all other entities having transactions
with it.
Transactions between owner and business are
recorded in the accounting books – Capital Ac and
Drawings A/c.
If this assumption is not followed, the results (profits
or losses) of the business will not be true and fair and
the financial status of the business may not be
correctly measured.
4
5. Effect of adopting Business Entity Concept:
Only the business transactions are recorded and
reported and not the personal transactions of the
owners.
Income or profit is the property of the business unless
distributed among the owners.
The personal assets of the owners or shareholders are
not considered while recording and reporting the
assets of the business entity.
5
6. Money Measurement Concept
According to this assumption all business transactions
should be recorded in terms of money, i.e., currency of
the country.
Only such transactions and events which can be
interpreted in terms of money are recorded.
Events which cannot be expressed in money terms do
not find place in the books of account though they
may be very important for the business.
The system of accounting treats all units of money as
the same irrespective of their time dimension.
6
7. Cost Concept or Historical Cost Concept
According to this concept, the various assets acquired
by a firm should be recorded on the basis of the actual
amounts involved or spent.
If nothing has been paid for acquiring an asset, it
would not be shown in the accounting books as an
asset.
The cost concept does not mean that the assets will
always be shown at cost. The fixed asset will be
recorded at cost at the time of its purchase but it may
systematically be reduced in its value by charging
depreciation.
7
8. Going Concern Concept
According to this concept, it is assumed that the
business enterprise is a continuing one, not on the
verge of closure. Business transactions are recorded
from this point of view.
On the basis of this concept, a clear distinction is
made between assets and expenses.
Because of this concept that fixed assets are valued on
the basis of cost less proper depreciation.
If it is certain that a business will continue for a
specified period, then the accounting records will be
kept on the basis of expected life of the business.
8
9. Dual Aspect Concept
According to this principle, every transaction has two
aspects and both the aspects are recorded in the
accounting books. This concept is the basis of double
entry system or modern accounting.
The following accounting equation is drawn on the
basis of this principle:
Assets = Capital (or Owner’s Equity) + Liabilities
(Claims of outsider)
9
10. Example:
Transaction 1. Ram started business with cash Rs.
70,000.
10
Assets
Rs.
=
Liabilities
Rs.
+
Capital
Rs.
Cash (+) 70,000 (+) 70,000
70,000 = Nil + 70,000
11. Example:
Transactions 2. Purchased furniture Rs. 8,000.
Now new equation will be as follows:
11
Assets
Rs.
=
Liabilities
Rs.
+
Capital
Rs.
Cash 62,000 +
Furniture 8,000
(+) 70,000
70,000 = Nil + 70,000
12. Example:
Transactions 3. Goods purchased for Rs. 12,000 on
credit basis.
Now new equation will be as follows:
12
Assets
Rs.
=
Liabilities
Rs.
+
Capital
Rs.
Cash 62,000 +
Furniture 8,000 +
Stock 12,000
Creditors for goods
12,000
70,000
82,000 = 12,000 + 70,000
13. Realisation or Revenue
Recognition Concept:
According to this concept revenue is recognised only
when a sale is made.
No sale can be said to have taken place, unless money
has been realised i.e., cash has been received or a legal
obligation to pay has been assumed by the customer.
It prevents business firms from inflating their profits
by recording incomes that are likely to accrue i.e.
expected incomes or gains are not recorded.
13
14. Exceptions to Realisation Concept:
Long-term contracts. In long-term contracts where,
the payments are received in installments on the basis
of work completed and certified. In such cases,
revenue is considered realised normally in a
proportion of work completed or cash realised or any
other reasonable basis.
Ready market. Some goods have a ready market. For
example, gold, silver, etc. In such cases revenue is
considered recognised as soon as these are
manufactured as these can be sold in the market easily.
14
15. Exceptions to Realisation Concept:
Uncertainty. When realisation of revenue is uncertain,
revenue is not considered realised even when goods
are delivered to customers. For example, sale of goods
on instalments basis or on hire purchase basis. In such
cases, revenue is recognised in the proportion of
instalments realised to total instalments.
15
16. Accrual Concept
Business transactions are recorded as and when they occur
and not when the related payments are received or made.
This concept is called accrual basis of accounting.
Accrued revenues and costs are recognized as they are
earned and incurred and recorded in the financial
statements of the period.
On the basis of this concept, adjustment entries relating to
outstanding and prepaid expenses and income received in
advance etc. are made.
They have their impact on the Income Statement and the
Balance Sheet.
16
17. Accounting Period Concept
The users of financial information need periodical
reporting relating to the performance of the business.
It is an interval of time at the end of which financial
statements are prepared and communicated.
Normally, the accounting period consists of twelve
months.
However, there is no restrictions on the business
entities on providing information at more frequently
intervals to investors, if they wish.
17
18. Matching Concept
According to matching principle, the revenue of a
given period should be matched with the expenses of
the same period.
According to this concept, adjustments should be
made for all outstanding expenses, accrued incomes,
prepaid expenses and unearned incomes etc. while
preparing the final accounts at the end of the
accounting period.
18
19. Accounting Conventions
The term ‘convention’ denotes custom or tradition or
practice based on general agreement or common
consent among the accounting bodies which guide the
accountant while preparing the financial statements.
Following are the important accounting conventions:
Consistency Convention
Conservatism or Prudence Convention
Convention of Full Disclosure
Convention of Materiality
19
20. Consistency Convention
According to this convention, financial statements
should be prepared on the same basis as that of
the preceding period.
Whatever may be the accounting policies or
methods, once decided, these are to be followed
consistently.
This provides comparability to accounting data of
the same enterprise over the periods or data of
different enterprises of the same period or both.
(Contd.)
20
21. Consistency Convention (Contd.)
Whenever there is any change in policy the results
of the enterprise and financial position may be
affected.
Nature and effect of such change and the
justification of the change must be informed to the
users of accounting information by way of foot
notes.
21
22. Consistency Convention: Examples
Following are the examples of such changes:
Change in the method of valuation of stock.
Change in the method of providing depreciation.
Change in the basis of making provision for bad and
doubtful debts.
It is assumed that accounting policies are consistent
from one period to another. This provides
comparability to accounting data. If comparability is
lost the relevance of accounting data for users’
judgment and decision making is gone.
22
23. Conservatism or Prudence Convention
It is a policy of playing safe or with caution. According to
Conservatism or Prudence convention,
The accountant should not anticipate income and
should provide for all possible losses, and
Faced with the choice between two methods of valuing
an asset the accountant should choose a method which
leads to the lesser value.
The main objective this convention is that the
financial statements should disclose the actual
results.
It should be noted that no deliberate attempt be
made to understate the profits and values of assets.
23
24. Conservatism Convention: Some Examples
Closing stock is valued at cost or market price
whichever is less.
A provision for bad and doubtful debts on debtors is
made in anticipation of actual bad debts in future.
In the accounting books of a partnership firm, joint
life policy is shown either nil or at surrender value as
against the sum assured or premium paid.
24
25. Convention of Full Disclosure
According to this Convention, all facts which are
significant and necessary to make financial statements
complete and understandable, must be disclosed.
Significance of information is viewed from the point of
the users of financial information.
The disclosure can be done either in financial
statements or in foot notes given at the end of
financial statements.
(Contd.)
25
26. Convention of Full Disclosure (Contd.)
Disclosure of many facts is required not only under
legal provisions but also to make the accounting
system fair and transparent.
The information to be disclosed may relate to current
accounting period, previous period or to post-Balance
Sheet date.
26
27. Convention of Full Disclosure: Examples
Following are the important facts usually disclosed in
the financial statements:
Change in method of providing depreciation.
Change in method of valuation of closing stock.
Basis of making provision for bad and doubtful debts.
A big loan taken by the company, after the date of
preparing balance sheet.
Contingent liabilities are always shown as foot notes.
27
28. Convention of Materiality
The full disclosure principle requires that all facts
which are significant and necessary to make financial
statements complete and understandable, must be
disclosed.
The materiality principle is an exception to the full
disclosure. According to the materiality principle,
items or events, having insignificant economic effect,
or not being relevant to the user, need not to
disclosed.
28
29. Convention of Materiality (Contd.)
Materiality is a relative term and depends on its nature
and the amount involved.
An item should be regarded as material if there is
reason to believe that knowledge of it would influence
the decision of informed investors.
Thus, what is material is a matter of exercising
discretion. It is to be noted that an item may be
material for one company and the same item may be
immaterial for the other company.
29
30. Convention of Materiality (Contd.)
Following are the few examples:
A small tool costing Rs. 400 is material for a small
workshop, but may not be material for a big company
like Carrier Aircon Ltd.
If a pocket calculator is purchased for Rs. 600 strictly it
should be capitalised under the head of office
equipments since it will serve for several years. But it
will be better to write off it as a revenue expenditure as
the amount is small.
30