Accounting framework, Financial Management

Accounting Framework

The rules and conventions of accounting are generally referred to as the conceptual framework of accounting.  As already elaborates in the previous section accounting communicates financial information to the several stakeholders.  It is essential in which there is uniformity in the preparation of financial statement of different business enterprises at a point of time and consistency over a period of time.  To have uniformity & consistency in the financial statements they are prepared inside a framework of GAAP "(Generally Accepted Accounting Principles)". A Generally accepted accounting principle follows a conceptual framework that are expressed as postulates, concepts, convention, principals, axioms, etc. For our reasons we are going to use the term Accounting Principles Yorston, Smith and Brown describes accounting principles as "the body of doctrines generally related with the theory and procedure of accounting and serving as an explanation of current practices and as guide for selection of conventions and process where alternatives exist". The most significant goal of accounting principles is to give a coherent set of logical principles which form the general frame for the evaluation and development of sound accounting principles.

Posted Date: 2/6/2013 12:30:56 AM | Location : United States







Related Discussions:- Accounting framework, Assignment Help, Ask Question on Accounting framework, Get Answer, Expert's Help, Accounting framework Discussions

Write discussion on Accounting framework
Your posts are moderated
Related Questions
Peak Inc. needs to order Canadian raw materials to use in its production process. The Canadian exporter typically invoices Peak in Canadian dollars. Assume that the current exchang


What is the decision rule for accepting or rejecting proposed projects when using internal rate of return? Whenever the internal rate of return is equal or greater than to the

You are given the following information for Clapton Guitars, Inc. Profit margin 6.3% Total Asset turnover 1.6 Total debt ratio 0.44 Payout ratio 35% Calculat

This is the part of after-tax personal income that is not spent.

Why is the coefficient of variation a better risk measure to use than the standard deviation when evaluating the risk of capital budgeting projects? The coefficient of variatio

(a) The BEQ is 200 customers per month, i.e. $3,000 / ($20 - $5) (b) The margin of safety is 300 customers, i.e. 500 - 200 (c) Graph (d) New break-even is 334 customers, i

Correlation Among Stock Index Returns Correlation among stock Index Returns can be defined as the extent to which the values of different types of investments move in tandem wi

State the major decision of financial management The major decision of financial management is the decision relating to dividend policy. The dividend must be analysed in relat

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain. In fact, an analyst wouldn't use the Modified Du Pont eq