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Accounting Framework - Convention of Conservation
Conservatism refers to the principle and practices that are established through way of tradition, reluctance to change from established principles and practices & inclination to play safe.
As per this convention accountant does not assess any gain or income until the similar has been realised or converted within money, but at the time of estimating expenses or losses the accountant goes beyond the doctrine of objectivity and makes a subjective estimate of possibility. It is for the purpose, in accounting; proper provisions are always made against current profit for future losses and contingencies.
COMPOUNDING TECHNIQUE is the method of calculating the future values of cash flows and involves calculating compound interest. Under this process, interest is compounded when the
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Techiniques of capm Effects of capm
name the concept which increases the return on equity shares by changing the capital structure of the co.
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