PPT - Theory Base of Accounting - Accountancy Class 11 - Commerce

 Page 1


Theory Base of Accounting, AS and IFRS
Chapter 3
Theory Base of Accounting,
Accounting Standards and 
International Financial Reporting Standards 
(IFRS)
1
Page 2


Theory Base of Accounting, AS and IFRS
Chapter 3
Theory Base of Accounting,
Accounting Standards and 
International Financial Reporting Standards 
(IFRS)
1
Theory Base of Accounting, AS and IFRS
Learning Objectives
This chapter enables you to understand:
1. Meaning and Nature of Accounting Principles
2. Features of Accounting Principles
3. Necessity of Accounting Principles
4. Fundamental Accounting Assumptions
a. Going Concern
b. Consistency 
c. Accrual
2
Page 3


Theory Base of Accounting, AS and IFRS
Chapter 3
Theory Base of Accounting,
Accounting Standards and 
International Financial Reporting Standards 
(IFRS)
1
Theory Base of Accounting, AS and IFRS
Learning Objectives
This chapter enables you to understand:
1. Meaning and Nature of Accounting Principles
2. Features of Accounting Principles
3. Necessity of Accounting Principles
4. Fundamental Accounting Assumptions
a. Going Concern
b. Consistency 
c. Accrual
2
Theory Base of Accounting, AS and IFRS
Learning Objectives
5. Accounting Principles or Concepts
a. Accounting Entity b. Money Measurement
c. Accounting Period d. Full Disclosure
e. Materiality f. Prudence or Conservatism 
g. Cost h. Matching
i.  Dual Aspect j. Revenue Recognition 
(Realisation) 
k. Verifiable Objective
3
Page 4


Theory Base of Accounting, AS and IFRS
Chapter 3
Theory Base of Accounting,
Accounting Standards and 
International Financial Reporting Standards 
(IFRS)
1
Theory Base of Accounting, AS and IFRS
Learning Objectives
This chapter enables you to understand:
1. Meaning and Nature of Accounting Principles
2. Features of Accounting Principles
3. Necessity of Accounting Principles
4. Fundamental Accounting Assumptions
a. Going Concern
b. Consistency 
c. Accrual
2
Theory Base of Accounting, AS and IFRS
Learning Objectives
5. Accounting Principles or Concepts
a. Accounting Entity b. Money Measurement
c. Accounting Period d. Full Disclosure
e. Materiality f. Prudence or Conservatism 
g. Cost h. Matching
i.  Dual Aspect j. Revenue Recognition 
(Realisation) 
k. Verifiable Objective
3
Theory Base of Accounting, AS and IFRS
Learning Objectives
6. Accounting Standards
a. Meaning of Accounting Standards
b. Nature of Accounting Standards
c. Utility of Accounting Standards
d. Accounting Standards issued by the Accounting
Standards Board of the Institute of Chartered
Accountants of India
7. IFRS (International Financial Reporting 
Standards)
4
Page 5


Theory Base of Accounting, AS and IFRS
Chapter 3
Theory Base of Accounting,
Accounting Standards and 
International Financial Reporting Standards 
(IFRS)
1
Theory Base of Accounting, AS and IFRS
Learning Objectives
This chapter enables you to understand:
1. Meaning and Nature of Accounting Principles
2. Features of Accounting Principles
3. Necessity of Accounting Principles
4. Fundamental Accounting Assumptions
a. Going Concern
b. Consistency 
c. Accrual
2
Theory Base of Accounting, AS and IFRS
Learning Objectives
5. Accounting Principles or Concepts
a. Accounting Entity b. Money Measurement
c. Accounting Period d. Full Disclosure
e. Materiality f. Prudence or Conservatism 
g. Cost h. Matching
i.  Dual Aspect j. Revenue Recognition 
(Realisation) 
k. Verifiable Objective
3
Theory Base of Accounting, AS and IFRS
Learning Objectives
6. Accounting Standards
a. Meaning of Accounting Standards
b. Nature of Accounting Standards
c. Utility of Accounting Standards
d. Accounting Standards issued by the Accounting
Standards Board of the Institute of Chartered
Accountants of India
7. IFRS (International Financial Reporting 
Standards)
4
Theory Base of Accounting, AS and IFRS
MEANING AND NATURE OF ACCOUNTING PRINCIPLES
"Principles of Accounting are the general law or rule
adopted or proposed as a guide to action, a settled
ground or basis of conduct or practice."
-The American Institute of Certified Public Accountants
Accounting Principles are the rules of action or
conduct adopted by accountants universally while
recording accounting transactions. They are the
norms or rules which are followed in treating various
items of assets, liabilities, expenses, incomes, etc.
5