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Description of Assessment Requirements 1 Description Students are required to fully describe 10 Key concepts of accounti
Finance & Accounting
Pages 10 (2510 words)
Ten Key Concepts of Accounting Student Name: Subject: Professor: February 25, 2013 Ten Key Concepts of Accounting Introduction The Accounting concepts ensure better financial report communication. The research delves on International Accounting Standard no.
International Accounting Standards (IAS) no. 1 states that the concepts guide the how the contents of the financial accounting reports should be constructed. The conceptual framework of accounting includes the objectives concepts of financial reporting group. The second group of concept accounting concepts represents the qualitative characteristics of useful financial information. The third group of conceptual accounting framework concepts includes description, recognition and measurement concepts of the financial reports’ elements (Alexander, 2008). Discussion In terms of the first objective accounting concept, the financial reports are prepared in order to present the financial data pertaining to the business entities’ periodic transactions. Consequently, the financial statement preparers implement the going concern accounting concept. The concept indicates that business entity is assumed to continue its business operations for several years, without any telltale signs of bankruptcy creeping into the doors of the business entity. When bankruptcy issues crop up, the going concern concept no longer applies to the business entity. The going concern concept indicates the entity has no plans of folding up or liquidating the business operations within the foreseeable future (Kieso et al., 2011). Relevance Accounting Concept . ...
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