The financial statements are produced following the

§   accepted accounting concepts or principles

§   for its uniform understanding.

They are known as ‘Generally Accepted Accounting Principles’ (GAAP) and Accounting Standards.

In this chapter contain following topics

2.01  Meaning and Nature of Generally Accepted Accounting Principles

2.02  Accounting Concepts

  2.02.01    Going Concern Concept

  2.02.02   Accrual Concept

  2.02.03    Consistency Concept

  2.02.04    Money Measurement Concept

  2.02.05    Dual Aspect Concept

  2.02.06    Accounting Period or Periodicity Concept

2.02.07     Matching Concept

2.02.08     Realisation Concept

  2.02.09     Business Entity Concept

  2.02.10     Materiality Concept

  2.02.11     Conservatism or Prudence Concept

  2.02.12     Concept of Full Disclosure

  2.02.13     Historical Cost Concept 

  2.02.14     Objective Evidence Concept

2.03    Accounting Standards

2.04    Accounting Standards Issued by the ICAI

Generally Accepted Accounting Principles (GAAP) and Accounting Standards

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