Fundamental Accounting Concepts (Going Concern, Accruals, etc.)

Summary

Key concepts: going concern, accruals, consistency, prudence, materiality, substance over form, etc.

Key Points

• Going concern: business will continue in the foreseeable future.
• Accruals: income and expenses matched to the period they relate to.
• Other concepts: consistency, prudence, materiality, substance over form.

Reference

See: [[ACCA Book-keeping/IACEW PDF.pdf]]

• Chapter 5: The Conceptual Framework, accounting concepts and conventions (pages 97–122)
• Section: "Fundamental accounting concepts"