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. 5Read More