Page 49 - CA_ELG_Volume I_ELG-Sample

Paper 1 Principles and Practices of Accounting Theoretical Framework 1.39

(i) Investors

(ii) Employees

(iii) Lenders

(iv) Suppliers and Creditors

(v) Customers

(vi) Government and their agencies

(vii) Public

(viii) Management

; Accounting Concepts – assumptions on the basis of which financial statement of a
business entity is prepared.

; The widely accepted accounting concepts are —

◦ Entity concept

◦ Accrual concept

◦ Money measurement concept

◦ Periodicity concept

◦ Going concern concept

◦ Conservatism

◦ Cost concept

◦ Materiality

◦ Realisation concept

◦ Dual aspect concept

◦ Matching concept

; Fundamental accounting assumptions are Going concern, Consistency and Accrual.

; Understandability, relevance, reliability, comparability, materiality, faithful
representation, substance over form, neutrality, prudence, full-fair and adequate
disclosure and completeness are qualitative characteristics of the financial state-
ments. These are the attributes that make the information provided in financial
statements useful to users.

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