Accounting Conventions and Standards

An accounting convention refers to common

An accounting convention refers to common practices and customs that are universally followed in recording and presenting accounting information. Thes

This convention requires that the same

This convention requires that the same accounting principles and methods should be used year after year when preparing financial statements. For examp

This convention requires that all material

This convention requires that all material and relevant facts concerning financial statements should be fully, fairly, and adequately disclosed. Full

This convention states that only material

This convention states that only material (significant and important) facts should be recorded in detail in the books of accounts, while immaterial it

This convention follows the principle

This convention follows the principle: 'Anticipate no profit, but provide for all possible losses.' It means profit should not be recorded until it is