Accounting Concepts and Qualitative Characteristics of Financial Reports

Project for business

Table of Contents
Project for business.........................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Five accounting concepts used in preparing financial statements using examples.....................3
Qualitative characteristics of financial reports............................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The accounting is used for keeping records of various financial transaction concerned with
individuality and entity. The accounting concepts are called as general conversions that is utilise
as a guideline in dealing accounting situation. The auditors certify financial statement of business
while preparing with accrual concept (Boyd, 2020). The report aims to covers aspect of five
accounting concepts used in preparing financial statements using examples. It also includes
qualitative characteristics of financial reports that is useful in the financial reports.
MAIN BODY
Five accounting concepts used in preparing financial statements using examples
The accounting concepts is effective conventions which is adopted in the rules of
accountancy as well as applied principles while recording events of economic in order to prepare
financial statements. The fundamental accounting concept regarding preparation of financial
statement is mention bellow-
 Money measurement concept- In general accounting deals with those respective items
which are highly capable towards being expressed in form of monetary. Money consists
of useful advantage where denominator has to express wide range resources acquire by
business. Whereas not each type of resources is able to measure monetary terms so it will
be eliminated from the balance sheet. The money measurement restricts scope of
accounting financial statement.
 Historical cost concept- The assets that is shown in balance reflect the value that is
associated with historic cost (acquisition cost) The methodology of assets measuring
implemented by the accountant in preferring method based on current value (Zeshan,
2021). Example- Most of the commentators recognise particular convection difficult in
supporting outdated historical cost which aid assessment existing financial position It will
record value in more realistic view for relevant financial position. This system measure
current values that will present number of problem.