Accounting Concepts and Conventions

Accounting
conventions are the general norms and practices of the accounting profession
which are expected to be complied with by accountants. The common conventions
are:
1.  
Prudence
2.  
Consistency
3.  
Objectivity
4.  
Materiality
Prudence: This convention demands exercising
great care in the recognition of profit while all losses are adequately
provided for.
Consistency: The same as consistency in
accounting principles.
Objectivity: This convention connotes
independence of judgement on the part of the accountant preparing the financial
statement.
Materiality: This holds that only items of
material value are accorded their strict accounting treatment.

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