Accounting framework, Financial Management

Assignment Help:

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.


Related Discussions:- Accounting framework

Explain how to compute the overall balance, Explain how to compute the over...

Explain how to compute the overall balance and discuss its significance. The overall BOP is defined by computing the cumulative balance of payments involving the current account,

Define the explicit cost of capital, Define the Explicit cost of capital ...

Define the Explicit cost of capital Explicit cost of retained earnings that involve no future flows to or from firm is minus 100 per cent. This must not tempt one to infer that

Show the accounting profit criteria, Q. Show the Accounting Profit Criteria...

Q. Show the Accounting Profit Criteria? Accounting Profit Criteria: - Under accounting profit criteria there is merely one method for making capital expenditure decisions. This

What are retained earnings, What are retained earnings?  Why are they impor...

What are retained earnings?  Why are they important? Retained earnings denote the sum of all the earnings obtainable to common stockholders of a business throughout its whole h

Illustrate in brokered markets in trade intermediation, Illustrate the in b...

Illustrate the in brokered markets according to trade intermediation. In brokered markets: In brokered markets, brokers execute an active search function to match buyers and

Financial issues of divestitures, FINANCIAL ISSUES OF DIVESTITURES Many...

FINANCIAL ISSUES OF DIVESTITURES Many corporations review the business portfolio to determine the operations that fit their core strategies. The firm's desire to achieve more f

Investment decision and cost of capital, INVESTMENT DECISION AND COST OF CA...

INVESTMENT DECISION AND COST OF CAPITAL In Finance, investment decision is disclose the allocation of funds in fixed assets or long term. This decision is also known as capita

Explain how the special drawing rights (sdr) is constructed, Explain how th...

Explain how the special drawing rights (SDR) is constructed. Also, discuss the circumstances under which the SDR was created. Answer:   SDR was made by the IMF in 1970 as a new r

Explain the risk-return relationship, Explain the risk-return relationship....

Explain the risk-return relationship. The relationship among risk and required rate of return is known as the risk-return relationship.  It is a positive relationship for the r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd