Accounting Principles and Concepts

In order to maintain some degree of consistency and uniformity in the preparation and maintenance of accounts, a number of principles and rules have emerged. These standards are often referred to as concepts or conventions. Together, they represent the founding framework that allows for the preparation and management of accurate financial records. Standardised accounting principles and concepts are of even greater importance in an era of globalization. Businesses may struggle to work with those from overseas if there are differences in accountancy procedures and protocols. Understanding all key accounting concepts and standards is necessary to begin working as a qualified accountant.

This tutorial introduces a variety of key accounting concepts and standards, along with accounting concepts’ meaning and significance from a modern business perspective. The overall accountancy framework is introduced and explored, along with a brief look at ongoing efforts to bring in wider standardization. Discover why it is that businesses worldwide have come to be reliant on a specific set of accounting standards.