BUS 2201, Principles Of Accounting 123

13. Principles of Accounting

In the case of the reporting of financial information, companies as well as other businesses must adhere to certain rules and guidelines that are known in accounting standards. The terminology and methods that accountants are required to follow are standardized by these guidelines, making it much easier to analyze financial information. These rules, known as the International Financial Reporting Standards (IFRS) that have been implemented in 167 different countries and are the accounting principles that are employed the most often (Tuovila et al. 2021). It is believed that the United States of America follows the specific accounting standards that are often referred to as commonly accepted accounting standards (GAAP). These are a few ideas of the accounting principles that can be believed to be the most fundamental ones: The concept of conservatism The Accrual principle Principle of continuous operations Time period principle Consistency Principle and the Matching Principle The Matching Principle Monetary Unit Principle The Revenue Recognition Principle and the Economic Entity Principle and the Full Disclosure Principle and the Cost Principle and the materiality Principle as well as the Reliability Principle are a few of the most important accounting principles (Tan & Wong, 2020). Cont…