These are assumptions, the users of financial statements take for granted. As long as financial statements are prepared in accordance with these assumptions, no separate disclosure in financial statements would be necessary.

 

There are three fundamental accounting assumptions:

(i) Going Concern

(ii) Consistency

(iii) Accrual

If nothing has been written about the fundamental accounting assumption in the financial statements then it is assumed that they have already been followed in their preparation of financial statements. However, if any of the above mentioned fundamental accounting assumption is not followed then this fact should be specifically disclosed.

March 17, 2012

0 Responses on Fundamental Accounting Assumptions"

Leave a Message

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Calendar

May 2015
M T W T F S S
« Oct    
 123
45678910
11121314151617
18192021222324
25262728293031
top
Template Design © Jag Tech Solution All rights reserved.