Definition of Accounting Principles, Assumptions, and Concepts
The basic underlying accounting principles, assumptions, and concepts include the following:
- Cost principle
- Full disclosure principle
- Matching principle
- Revenue recognition principle
- Economic entity assumption
- monetary unit assumption
- Time period assumption
- Going concern assumption
- Constraints such as materiality and conservatism
- Qualities such as reliability, relevance, consistency, comparability, cost/benefit
Note that the above are only the basic or fundamental underlying guidelines. The extensive generally accepted accounting principles (US GAAP) are found in the authoritative source known as the Financial Accounting Standards Board Accounting Standards Codification.
