1. Slide 10.1 Wood and Sangster, Frank Wood's Business Accounting Volume 1 Power Points on the Web, 11 th Edition © Pearson Education Limited 2008 Objectivity and subjectivity A value that everyone agrees to because it is based upon a factual occurrence is said to be objective. Using one’s own judgement to arrive at a value is said to be subjective.

2. Slide 10.2 Wood and Sangster, Frank Wood's Business Accounting Volume 1 Power Points on the Web, 11 th Edition © Pearson Education Limited 2008 International Accounting Standards The need for an IASB has mainly been due to: Considerable growth in international investment. Growth in multinational firms. Countries are developing their own standard- setting bodies. Some countries cannot afford a standard-setting body of their own.

3. Slide 10.3 Wood and Sangster, Frank Wood's Business Accounting Volume 1 Power Points on the Web, 11 th Edition © Pearson Education Limited 2008 Underlying accounting concepts Historical cost concept Money measurement concept Business entity concept Dual aspect concept Time interval concept

4. Slide 10.4 Wood and Sangster, Frank Wood's Business Accounting Volume 1 Power Points on the Web, 11 th Edition © Pearson Education Limited 2008 Fundamental accounting concepts Going concern Consistency Prudence Accrual concept Separate determination Substance over form