A set of accounting concepts, principles, assumptions and conventions which provides the conceptual basis or framework for financial accounting book-keeping and records.In turn, these aim to establish a degree of uniformity, comparability and understandability in the accounting system, and all relevant procedures and presentations of accounting information that properly meet the needs of the management and broader users. These concepts and assumptions help to make financial statements comparable for a better assessment and comparison of performance.
These concepts and assumptions come under the following main categories:
Basic assumptions:
Basic principles/ concepts:
Modifying principles:
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