Ppt on cost accounting concepts

22-1. 22-2 BUDGETARY CONTROL AND RESPONSIBILITY ACCOUNTING Accounting, Fifth Edition 22.

delegated to many managers throughout the organization. ► ► Segment – area of responsibility for which reports are prepared. LO 4 Describe the concept of responsibility accounting. Responsibility Accounting 22-42   Two differences from budgeting in reporting costs and revenues: 1. 1.Distinguishes between controllable and noncontrollable costs. 2. 2.Emphasizes or includes only items controllable by the individual manager in performance reports.   Applies to both profit and/


© 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart1 of 315 C HAPTER 6 Control and Accounting Information Systems.

3Risk assessment 4Information and communication 5Monitoring © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart9 of 315 OVERVIEW OF CONTROL CONCEPTS Internal control is the process implemented by the board of directors, management/ completed, including: Modules or tasks to be performed Who will perform them Anticipated completion dates Project costs Project milestones should be specified—points when progress is reviewed and actual completion times are compared to /


2-1 Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting Prepared by Coby Harmon University of California, Santa Barbara.

the basic principles of accounting. 8.Describe the impact that the cost constraint has on reporting accounting information. After studying this chapter, you should be able to: Conceptual Framework for Financial Reporting 2 LEARNING OBJECTIVES 2-40 LO 6 Illustration 2-7 Conceptual Framework for Financial Reporting The FASB sets forth most of these concepts in its Statement of Financial Accounting Concepts No. 5, “Recognition and/


Database System Concepts, 5th Ed. ©Silberschatz, Korth and Sudarshan See www.db-book.com for conditions on re-usewww.db-book.com Chap 14 Query Optimization.

of the bank’s customers are likely to have accounts in branches located in Brooklyn it is better to compute  branch_city = “Brooklyn” (branch) account first. ©Silberschatz, Korth and Sudarshan14.42Database System Concepts, 5 th Edition, Oct 5, 2006 Enumeration /) P2= findbestplan(S - S1) A = best algorithm for joining results of P1 and P2 cost = P1.cost + P2.cost + cost of A if cost < bestplan[S].cost bestplan[S].cost = cost bestplan[S].plan = “execute P1.plan; execute P2.plan; join results of P1 and P2 /


Database System Concepts 5 th Ed. ©Silberschatz, Korth and Sudarshan See www.db-book.com for conditions on re-usewww.db-book.com Chapter 14: Query Optimization.

 branch_city = “Brooklyn” (branch) account) depositor) ©Silberschatz, Korth and Sudarshan14.19Database System Concepts - 5 th Edition, Oct 5, 2006. Depositor Relation Account Relation Branch Relation ©Silberschatz, Korth and Sudarshan14.20Database System Concepts - 5 th Edition, Oct 5, 2006/(S - S1) A = best algorithm for joining results of P1 and P2 cost = P1.cost + P2.cost + cost of A if cost < bestplan[S].cost bestplan[S].cost = cost bestplan[S].plan = “execute P1.plan; execute P2.plan; join results of /


1 PowerPointPresentation by PowerPoint Presentation by Gail B. Wright Professor Emeritus of Accounting Bryant University MANAGERIAL ACCOUNTING 10 TH EDITION.

Audit. LO 3 Overview & Basic Concepts 10 FINANCIAL PROFESSIONALS  Financial VP: in charge of all accounting & finance  Controller: manages cost & managerial accounting  Treasurer: manages cash flows; raises cash  Cost accountants/managers: analyze, manage costs  Internal audit: provides auditing, consulting services LO 3 Overview & Basic Concepts 11 ETHICAL, REGULATORY FRAMEWORK  Standard setting  Cost Accounting Standards Board sets cost accounting standards  Professional organizations  Institute/


©Silberschatz, Korth and Sudarshan14.1Database System Concepts 3 rd Edition Chapter 14: Query Optimization Overview Catalog Information for Cost Estimation.

(r) by using a linear file scan or binary search, or by using indices in the following ways: ©Silberschatz, Korth and Sudarshan14.50Database System Concepts 3 rd Edition Example of Cost Estimate for Complex Selection Consider a selection on account with the following condition: where branch-name = “Perryridge” and balance = 1200 Consider using algorithm A8:  The branch-name index is clustering, and if/


© 2002 Prentice Hall Business Publishing Introduction to Financial Accounting, 8th EditionHorngren, Sundem, and Elliott 14 - 1 Chapter 14 Conceptual Framework.

physical operating capability to be maintained © 2002 Prentice Hall Business Publishing Introduction to Financial Accounting, 8th EditionHorngren, Sundem, and Elliott 14 - 38 Income or Capital u The historical cost method of income measurement causes problems because the historical cost method is a financially driven concept. When prices are rising, historical cost overstates income because more resources are needed to maintain the physical capital at the/


Chapter 10-1 Managerial Accounting, Sixth Edition Budgetary Control And Responsibility Accounting 10.

. 2.Evaluate the usefulness of static budget reports. 3.Explain the development of flexible budgets and the usefulness of flexible budget reports. 4.Describe the concept of responsibility accounting. 5.Indicate the features of responsibility reports for cost centers. Chapter 10-3 Learning Objectives 6.Identify the content of responsibility reports for profit centers. 7.Explain the basis and formulae used in evaluating/


2-1 Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting Prepared by Coby Harmon University of California, Santa Barbara.

the basic principles of accounting. 8.Describe the impact that the cost constraint has on reporting accounting information. After studying this chapter, you should be able to: Conceptual Framework for Financial Reporting 2 LEARNING OBJECTIVES 2-40 LO 6 Illustration 2-7 Conceptual Framework for Financial Reporting The FASB sets forth most of these concepts in its Statement of Financial Accounting Concepts No. 5, “Recognition and/


1 Accounting and Financial Management. 2 Introduction to Introduction to Accounting Accounting Accounting & Financial Management.

that is not expected to significantly change in value over time. 100 Assets and services acquired should be recorded at their actual cost. Assets and services acquired should be recorded at their actual cost. Generally Accepted Accounting Principles and Basic Concepts The Cost Principle 101 Record assets at price paid to acquire and take it as base for subsequent years. Makes financial statements more objective/


Concepts of Bus. Combin. - 1 Business Combinations “A business combination occurs when an enterprise acquires net assets that constitute a business or.

substantial enough to eliminate all the non-current asset balances of the acquired company...... The remainder is to be reported as an extraordinary gain (SFAS 141) 2-30 Concepts of Bus. Combin. - 31 Accounting for Additional Costs Associated with Business Combinations (SFAS 141) Direct combination costs (Accounting, legal, investment banking and appraisal fees, etc.) Include in the purchase price of the acquired firm Indirect combination/


24-1. 24-2 CHAPTER24 Budgetary Control and Responsibility Accounting.

delegated to many managers throughout the organization. ► ► Segment – area of responsibility for which reports are prepared. SO 4 Describe the concept of responsibility accounting. The Concept of Responsibility Accounting 24-40   Two differences from budgeting in reporting costs and revenues:   Distinguishes between controllable and noncontrollable costs.   Emphasizes or includes only items controllable by the individual manager in performance reports.   Applies to both profit and not-for/


ABC Essentials  Become Familiar with Terminology  Emphasize Basic Concepts Behind Activity-Based Cost and ABM  Apply concepts thru Class Exercises.

the manufacturing operations group rather than as part of the corporate finance department. These German companies operate two separate accounting departments. One performs financial accounting functions for shareholders and tax authorities; the other maintains and operates the costing system for manufacturing operations. 42 Applying the Concepts Employee Empowerment Exercise #2 Information for Employee Empowerment A U.S. automobile components plant had recently been reorganized/


©Silberschatz, Korth and Sudarshan18.1Database System Concepts 3 rd Edition 1 Chapter 18: Distributed Databases Distributed Data Storage Network Transparency.

the number of disk accesses. In a distributed system, other issues must be taken into account:  The cost of a data transmission over the network.  The potential gain in performance from having several sites process parts of the query in parallel. ©Silberschatz, Korth and Sudarshan18.20Database System Concepts 3 rd Edition 20 Query Transformation Translating algebraic queries on fragments.  It must be possible/


© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart1 of 314 C HAPTER 6 Control and Accounting Information Systems.

impossible to achieve and prohibitively expensive. © 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart20 of 314 OVERVIEW OF CONTROL CONCEPTS Internal control systems have inherent limitations, including: –They are susceptible to / courts are busy with violent crimes and may regard teen hacking as “childish pranks.” –Fraud is difficult, costly, and time-consuming to investigate and prosecute. –Law enforcement officials, lawyers, and judges often lack the computer/


Introduction to Accounting Presented by Kevin Markle August, 2004.

(including potential) Government (tax assessment) Regulators Customers Introduction to Accounting 7 Fundamental concepts Accounting has two main divisions: Financial accounting Primarily prepared for users external to the company. Revenues, earnings, assets, etc. Management accounting Primarily for internal purposes Costing, budgeting, net present value, etc. This lecture will focus only on financial accounting. Introduction to Accounting 8 Fundamental concepts There are several ways that cash gets into a/


Complied By Prof. of Accounting Al-Azhar University.

Determine the Total Annual Professions Incomes, ( 2 ) – Deduct : Costs, Expenses and Allowances from the and Allowances from the total Incomes. /Accounting Glossary & Concepts Tax Glossary Tax Glossary Tax Systems Concepts Tax Systems Concepts Tax Accounting Concepts Tax Accounting Concepts مصطلحات الضريبة مصطلحات الضريبة مفاهيم النظم الضريبية مفاهيم النظم الضريبية مفاهيم المحاسبة الضريبية مفاهيم المحاسبة الضريبية Tax Accounting Glossary & Concepts Tax Tax Tax Books Tax Books Tax Accountant Tax Accountant/


Cram Session Part 1 Jim Clemons, CMA. Cost Management Terminology Financial Accounting – Reporting to external users – Financial statements – Historical.

and purchased inventory as follows DateQuantity PurchasedUnit Price 1 Apr15,000 units$8 1 Jul10,000 units$9 1 Oct12,500 units$10 Concepts in Financial Accounting Practice question 1 continued If the entity uses the weighted-average method of inventory valuation, cost of goods sold for the period will be A$186,978 B$197,000 C$228,023 D$235,000/


Merchandise Accounting

Chapter 5 Merchandise Accounting & Internal Control Key Concepts & Objectives Sales Adjustments Net Sales Discounts: Trade, Quantity & Prompt Pymt. Returns & Allowances Inventory Recording Systems Perpetual vs. Periodic Inventory Systems Cost of Goods Sold model Cost of Goods Purchased model Internal Control Systems  Safeguard Assets Sales of Merchandise – Review effect on the Accounting Equation -----------Balance Sheet------------- --Income Statement-- Assets = Liabilities + OE + Revenues - Expenses/


FINANCIAL ACCOUNTING AN INTRODUCTION TO CONCEPTS, METHODS, AND USES 12th Edition FINANCIAL ACCOUNTING AN INTRODUCTION TO CONCEPTS, METHODS, AND USES 12th.

understanding of the quality of earnings as a concept of evaluating generally accepted accounting principles discussed in Chapters 6 to 12. 2.Understand why the allowance method for uncollectible accounts matches bad debts with revenues better than the direct/4.It is probable that the seller will receive economic benefit 5.The seller can reliably measure the costs (including future costs) of the transactions An International Perspective (cont.) In addition, the IASC recommends In addition, the IASC/


Concepts in Federal Taxation Chapter 6: Business expense & Midterm review October 5, 2012.

amount that a taxpayer can afford to pay Where do you see this concept: Deductions Exclusions Credits Progressive tax rates Midterm Review – MC 5. Penelope purchased an annuity contract that cost $45,000. The contract will pay Penelope $600 per month for 10/ income in the year of payment Are included in income in the year of withdrawal Employer contribution $4,000 Pension account appreciation 3,000 Exclude from taxable income Defer tax until withdrawal Exclude from taxable income Midterm Review – MC 11. /


Database System Concepts, 5th Ed. ©Silberschatz, Korth and Sudarshan See www.db-book.com for conditions on re-usewww.db-book.com Chapter 22: Distributed.

the number of disk accesses. In a distributed system, other issues must be taken into account: The cost of a data transmission over the network. The potential gain in performance from having several sites process parts of the query in parallel. ©Silberschatz, Korth and Sudarshan22.61Database System Concepts - 5 th Edition, Aug 22, 2005. Query Transformation Translating algebraic queries on fragments. It must/


Power Notes Chapter 1 Introduction to Accounting and Business

warranties and support its product line Generally Accepted Accounting Principles Business entity concept Historical cost concept Objectivity concept Unit of measure concept Business Entity Concept Business is separate from the owner Business Owner Business’ cash Owner’s cash Historical Cost concept Transactions are recorded at the cost at the point of transaction 175,000 130,000 170,000 $150,000 Historical Cost concept Objectivity Concept Accounting records are based on objective evidence 175,000/


2 The Equation Learning Objectives

belong? Dividend Revenue Dividend Revenue O2.2 Objective 2.3: Concepts The following slides present 6 important concepts that guide many accounting practices and decisions. O2.3 (Monetary Unity) Concept Revenue Recognition Concept Concepts Objectivity Concept Unit of Measure (Monetary Unity) Concept Matching Concept Cost Concept Periodicity Concept Revenue Recognition Concept O2.3 (Monetary Unity) Concept Simply put, we must express accounts in monetary units such as dollars. Unit of Measure (Monetary/


Financial Accounting & Reporting Review Course: F1

follow within 4-5 years after decision made. Conceptual Frameworks underlying Financial Accounting The FASB creates a conceptual framework (set forth in 6 Statements of Financial Accounting Concepts or SFAC) that are not GAAP, but provides basic reasoning behind /in the market Income Approach – discount future earnings into present value, e.g. rental real estate Cost Approach – uses current replacement cost Hierarchy of inputs to be used in the valuation techniques Level 1 input Most Reliable Level 1 Inputs /


Foundation of Accounting

‘for every debit transaction there is a corresponding credit transaction, exp: liabilities+ capital= assets Accounting concepts (d) cost concept: assets is recorded in the books of accounts at the price paid to acquire it. Any change in the value of asset due to /passes to the buyer and he become liable to pay Conti.. Matching concept: it is necessary revenue of the period should be matched with the cost for the period . Accounting Conventions The term ‘convention’ is used to signify customs and traditions /


An Introduction to Accounting Courtesy: Dr Gagan Pareek

recording event, happening or transactions is recorded in terms of money. www.gaganpareek.com Cost Concept The underlying idea of cost concept is that: Asset is recorded at the price paid to acquire it, that is, at cost, and This cost is the basis for all subsequent accounting for that asset. The cost concept also implies that if nothing has been paid for acquiring something then it would not/


DEFINITION AND SCOPE ACCOUNTING STANDARDS. ACCOUNTING IS AN ART OF RECORDING CLASSIFYING AND SUMMARIZING TRANSACTIONS IN A SYSTEMATIC MANNER AND IN TERMS.

. INFLATION OR DEFLALTION NOT INCLUDED IN VALUE OF ANY ASSET. Health of the owner or Director is not taken into accounts even though it may have significant impact. COST CONCEPT COST CONCEPT: BUSINESS TRANSACTIONS ARE RECORDED IN BOOKS AT COST PRICE. FIXED ASSETS ARE KEPT AT COST OF PURCHASE AND NOT AT THEIR MARKET PRICE. EVERY TRANSACTION IS RECORDED WITH PRESENT VALUE AND NOT ANY FUTURE VALUE/


Concepts of Consolid. Statements - 1 Parent Subsidiary Consolidated financial statements are prepared. Concepts of Consolidated Financial Statements 2-1.

current year –Including identification of noncontrolling interest –Identification of REMAINING differential –Allocation of REMAINING differential Including appropriate valuation accounts –Depreciation/amortization of appropriate differentials –Impairment of goodwill Concepts of Consolid. Statements - 18 Applying the Cost Method If the COST METHOD is used by the parent company to account for the investment, then the consolidation entries will change only slightly. Remember... 1.No adjustments are recorded/


1 PowerPointPresentation by PowerPoint Presentation by Gail B. Wright Professor Emeritus of Accounting Bryant University MANAGERIAL ACCOUNTING 10 TH EDITION.

materials & labor, not directly traceable to a product are categorized as Manufacturing Overhead. LO 1 Overview & Basic Concepts 7 ACCOUNTING SYSTEM PURPOSES 1)To record costs by responsibility for performance evaluation & control. 2)To assign manufacturing costs to units produced for product costing. LO 3 Overview & Basic Concepts 8 BASIC COST FLOW EQUATION LO 3 Beginning + Transfers = Transfers + Ending Balance In Out Balance BB + TI = TO + EB/


Production and Supply Chain Management Information Systems

Production and Supply Chain Management Information Systems Concepts in Enterprise Resource Planning 2nd Edition Chapter 4 Production and Supply/inventory better Accounting Problems Most companies use standard costs to account for manufacturing costs Standard costs are based on historical costs for materials, labor and factory overhead Manufacturing costs are estimated by multiplying production quantities by standard costs Actual production costs invariably deviate from estimates using standard costs, and /


Book Keeping - MODULE – B CA R. C. JOSHI B.Com(Hons.),LL.B,CAIIB,FCA

ASCERTAIN FINANCIAL POSITION OF BUSINESS. TO FACILITATE RATIONAL DECISION MAKING TO RAISE FINANCE. TO SATISFY REQUIREMENT OF LAW AND USEFUL IN MANY RESPECTS. CONCEPTS OF ACCOUNTANCY. COST CONCEPT: BUSINESS TRANSACTIONS ARE RECORDED IN BOOKS AT COST PRICE. FIXED ASSETS ARE KEPT AT COST OF PURCHASE AND NOT AT THEIR MARKET PRICE. EVERY TRANSACTION IS RECORDED WITH PRESENT VALUE AND NOT ANY FUTURE VALUE. UNREALIZED GAINS ARE/


Finished Product Logistic Cost

is than Calculated at TDC Val level This variance gets cleared to COPS as part of the month end process to give “actual costs” in the COPS account. However, the generated variance is also used for logistics costs scorecard reporting. Concept VI – Actual & Variance E.g : Customer Frt ($10/Su) x Shipment 100 Su Actual Carrier Invoice is $ 1500.00 FPLC STD P/L/


HAPTER 7 Information Systems Controls for Systems Reliability

various threats. Management insight is needed in identifying potential costs and ensuring that all relevant organizational factors are considered. COBIT stresses that the CEO and CFO are accountable for ensuring that the organization has implemented a thorough / indeed conform to the organization’s security policies. PREVENTIVE CONTROLS Another dimension of the defense-in-depth concept is the use of a number of internal firewalls to segment different departments within the organization. PREVENTIVE CONTROLS/


Conceptual Framework Underlying Financial Accounting

elements of financial statements. Third Level: Recognition and Measurement The FASB sets forth most of these concepts in its Statement of Financial Accounting Concepts No. 5, “Recognition and Measurement in Financial Statements of Business Enterprises.” ASSUMPTIONS Economic entity Going concern Monetary unit Periodicity PRINCIPLES Historical cost Revenue recognition Matching Full disclosure CONSTRAINTS Cost-benefit Materiality Industry practice Conservatism LO 6 Describe the basic assumptions of/


HAPTER 7 Information Systems Controls for Systems Reliability

various threats. Management insight is needed in identifying potential costs and ensuring that all relevant organizational factors are considered. COBIT stresses that the CEO and CFO are accountable for ensuring that the organization has implemented a thorough / indeed conform to the organization’s security policies. PREVENTIVE CONTROLS Another dimension of the defense-in-depth concept is the use of a number of internal firewalls to segment different departments within the organization. PREVENTIVE CONTROLS/


Round 1.

to require that a person with three different businesses keep three different checking accounts? A) cost principle B) entity concept C) reliability concept D) going-concern concept Which of the following concepts (or principles) would be most likely to require that a person with three different businesses keep three different checking accounts? B) entity concept Assets are $270, 000 and ownerʹs equity is $90, 000 Assets are/


Presented by Doug Goodman, OCFO Field Operations Manager

Office of Chief Financial Officer (OCFO) – Key Information 4 Resource Stewardship & “The 10 Financial Commandments” 7 Budgeting, Funding, and Cost Concepts and Processes 9 Funds Control Concepts and Best Practices 31 Accounting Concepts and Processes 47 Procurement & Property Management Concepts and Processes 63 Financial Information Systems Concepts 68 Travel and Conference Services – Key Information 70 Training Objectives Provide an overview of Berkeley Lab financial management Provide financial/


Management of Computer System Performance

decision making. As an IT professional, be prepared to face this challenge. Business Case Accounting Concepts Marginal Costs – when a BCA is conducted, only stripped costs and revenues are measured. This means only variable direct costs are calculated excluding overhead and other cost factor multipliers. Business Case Accounting Concepts Time Value of Money – The concept that money today is worth more than it would be tomorrow considering the premise/


Andrew Graham Queens University School of Policy Studies 827/2015

Reliability (Representational faithfulness, verifiability, and neutrality). c. Secondary Qualitative Characteristics 1. Comparability (between entities) 2. Consistency (within an entity’s accounting periods.) 5. How? How are Financial Accounting Concepts implemented? By following Certain principles the concepts are put into practice. a. Historical Cost principle forms the basis for asset recognition. b. Realization principle provides a guide for revenue recognition. c. Matching principle facilitates expense/


Concepts in Enterprise Resource Planning 4th Edition

manufacturing a product For each batch of bars it produces, Fitter can estimate direct costs (materials and labor) and indirect costs (factory overhead) manufacturing costs = The number of batches produced is multiplied by the standard cost of a batch Production and Accounting must periodically compare standard costs with actual costs and then adjust the accounts. Concepts in Enterprise Resource Planning, 4th Edition The Production Planning Process Three important principles/


CONCEPTUAL FRAMEWORK OF ACCOUNTING Samir K Mahajan.

not indicate the price at which the asset could be sold for. Samir K Mahajan BASIC CONCEPTS OF ACCOUNTING contd. Matching Concept: Matching the revenues earned during an accounting period with the cost associated with the period to ascertain the result of the business concern is called the matching concept. It is the basis for finding accurate profit for a period which can be safely distributed/


ACCOUNTING AND FINANCE FOR BANKERS – Book Keeping - Module B K.ESWAR. MBA( XLRI) CHIEF MANAGER & FACULTY SPBT COLLEGE. MUMBAI.

OF OPERATIONS TO ASCERTAIN FINANCIAL POSITION OF BUSINESS. TO FACILITATE RATIONAL DECISION MAKING TO SATISFY REQUIREMENT OF LAW AND USEFUL IN MANY RESPECTS. CONCEPTS OF ACCOUNTANCY. COST CONCEPT: BUSINESS TRANSACTIONS ARE RECORDED IN BOOKS AT COST PRICE. FIXED ASSETS ARE KEPT AT COST OF PURCHASE AND NOT AT THEIR MARKET PRICE. EVERY TRANSACTION IS RECORDED WITH PRESENT VALUE AND NOT ANY FUTURE VALUE. UNREALIZED GAINS ARE/


Managerial Accounting by James Jiambalvo

together and added uniformly throughout the process. Recall that Labor and Overhead are referred to as conversion costs. Related Learning Objectives: Describe how products flow through departments and how costs flow through accounts. Discuss the concept of an equivalent unit. Calculate the cost per equivalent unit. Calculate the cost of goods completed and the ending Work in Process balance in a processing department. Describe a production/


Intermediate Accounting

of natural resources. Depletion Continuing Controversy Oil and Gas Industry: Cost of drilling a dry hole is a cost needed to find the commercially profitable wells. Oil and Gas Industry: Full cost concept Successful efforts concept Companies should capitalize only the costs of successful projects. LO 6 Explain the accounting procedures for depletion of natural resources. FULL-COST OR SUCCESSFUL EFFORTS? The controversy in the oil and gas/


Theory Base of Accounting, Accounting Standards and

and do not paint a better picture than what actually is. ACCOUNTING PRINCIPLES Cost Concept or Historical Cost Principle: According to the Cost Concept, an asset is recorded in the books of accounts at the price paid to acquire it and the cost is the basis for all subsequent accounting of the asset. Asset is recorded at cost at the time of its purchase but is systematically reduced in value/


Principle Of Financial Accounting Prepared by Dr.Siraj Ahmad College of Business Administration, Al-Kharj AlKharj University Kingdom of Saudi Arabia.

its Statement of Financial Accounting Concepts No. 5, “Recognition and Measurement in Financial Statements of Business Enterprises.” ASSUMPTIONS 1.Economic entity 2.Going concern 3.Monetary unit 4.Periodicity PRINCIPLES 1.Historical cost 2.Revenue recognition 3.Matching 4.Full disclosure CONSTRAINTS 1.Cost-benefit 2.Materiality 3.Industry practice 4.Conservatism Economic Entity – company keeps its activity separate from its owners and other/


Financial Accounting Prof. Trupti Naik. Inception of Business Factors affecting selection of the form of business firm/ Organization: - Risk appetite.

, certain rules or principles have been evolved. These rules/principles are classified as concepts and conventions. These are foundations of preparing and maintaining accounting records. Accounting Concepts Business Entity, Money Measurement, Going Concern, Accounting Period, Cost Concept, Duality Aspect concept, Realization Concept, Accrual Concept and Matching Concept. Business Entity The owner of the business is always separated from business/ enterprise Business is treated as a separate entity All/


ACCOUNTING AND FINANCE BANKERS J A I I B PAPER-2 MODULE ‘ C ‘ By RAVI ULLAL CONSULTANT.

TRANSACTIONS RELATING TO NOMINAL ACCOUNTS EVEN CERTAIN EXPENSES OF NON-RECURRING NATURE BASED ON MATERIALITY CONCEPT EVEN CERTAIN EXPENSES OF NON-RECURRING NATURE BASED ON MATERIALITY CONCEPT EXCESS OF SALE VALUE OF ASSET OVER W D VALUE EXCESS OF SALE VALUE OF ASSET OVER W D VALUE UPTO COST OF ASSET UPTO COST OF ASSET CAPITAL AND REVENUE EXPENDITURE DEFERRED REVENUE EXPENDITURE: DEFERRED REVENUE EXPENDITURE/


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