The document discusses key accounting concepts, assumptions, principles, and constraints. It defines accounting assumptions as rules that ensure efficient business operations according to standards. It also outlines core concepts like the economic entity, going concern, and revenue recognition assumptions. Finally, it describes constraints in financial reporting like materiality, conservatism, consistency, cost-benefit, and objectivity.

1. Accounting concepts and conventions
By
Dr.T Vara Lakshmi
Associate Professor & Head
Master of Business Administration
Business Economics and Financial Analysis

2. Accounting Principles

3. Accounting Assumptions
Accounting assumptions can be defined as a
set of rules that ensures the business
operations of an organization and are
conducted efficiently and as per the standards
defined by the FASB
(Financial Accounting Standards Board) which
ultimately helps in laying the groundwork for
consistent, reliable and valuable

4. Money unit

5. Economic Entity

6. Going Concern Concept

7. Time Period

8. Accounting Concepts
Accounting concept refers to the basic
assumptions and rules and principles
which work as the basis of recording of
business transactions and
preparing accounts.
This concept assumes that,
for accounting purposes, the business
enterprise and its owners are two
separate independent entities.

9. Revenue Recognition

10. Matching Principle

11. Full disclosure

12. Historical Cost

13. Accounting Constraints
In the field of accounting, when
reporting the financial statements of
a company, accounting
constraints (also known as
the constraints of accounting) are
boundaries, limitations, or guidelines.
These constraints may allow for
variations to
the accounting standards an
accountant is trying to follow.

14. Materiality

15. Conservatism

16. Consistency

17. Cost Benefit

18. Objectivity

19. THANK YOU