This time I will discuss briefly about accounting principles
Accounting principles are general rules that govern decisions
and underlying accounting technical developments .
1. Principle of Historical Cost
The principle of historical cost or historical cost principle is a reference
to a state in which GAAP requires that most of the assets are treated and
reported based on the acquisition price. This principle requires the use
of the acquisition price in recorded assets, liabilities, capital, and cost.
The acquisition price means the price of exchange approved by both parties
involved in the transaction. The acquisition cost must occur within a
transaction between two parties that are free.
2. Principle of Full Disclosure
The principle of full disclosure or full disclosure principle is the accounting
principles that presents complete information on the financial statements.
Information is presented in a summary of the transactions during the period
and balances of certain accounts. This is done because it would not be present
all the information in a financial statement. Meanwhile, to provide additional
information, it is necessary to make a footnote (footnote) and annexes essentials
needed in a financial report.
3. Principle of Revenue Recognition
The principle of recognition of income or revenue recognition principle is the
treasures inflows arising from the supply of goods or services performed by a
business unit during a given period . Revenue here was calculated based on the
amount of cash or its equivalent received from the sales transaction process to the party is free .
4. The Principle of Consistency
The principle of consistency or the consistency principle is the principle to compare between financial statements prepared by the financial statements in previous years so that the methods and procedures used in the accounting process can be applied consistently . So if the financial statements are found a difference between a post in two or more periods , it may soon be known that these differences occur not caused by differences due to differences in methods .
Accounting principles are general rules that govern decisions
and underlying accounting technical developments .
1. Principle of Historical Cost
The principle of historical cost or historical cost principle is a reference
to a state in which GAAP requires that most of the assets are treated and
reported based on the acquisition price. This principle requires the use
of the acquisition price in recorded assets, liabilities, capital, and cost.
The acquisition price means the price of exchange approved by both parties
involved in the transaction. The acquisition cost must occur within a
transaction between two parties that are free.
2. Principle of Full Disclosure
The principle of full disclosure or full disclosure principle is the accounting
principles that presents complete information on the financial statements.
Information is presented in a summary of the transactions during the period
and balances of certain accounts. This is done because it would not be present
all the information in a financial statement. Meanwhile, to provide additional
information, it is necessary to make a footnote (footnote) and annexes essentials
needed in a financial report.
3. Principle of Revenue Recognition
The principle of recognition of income or revenue recognition principle is the
treasures inflows arising from the supply of goods or services performed by a
business unit during a given period . Revenue here was calculated based on the
amount of cash or its equivalent received from the sales transaction process to the party is free .
4. The Principle of Consistency
The principle of consistency or the consistency principle is the principle to compare between financial statements prepared by the financial statements in previous years so that the methods and procedures used in the accounting process can be applied consistently . So if the financial statements are found a difference between a post in two or more periods , it may soon be known that these differences occur not caused by differences due to differences in methods .
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