Accounting Concepts vs Conventions
At the end of each financial year, financial statements are prepared by firms for a number of purposes, which include summarizing all activities and transactions, review the firm’s financial status, evaluate performance, and to make comparisons between previous years, competitors, and industry benchmarks. The financial statements prepared must be consistent and comparable and must also offer a true and fair view of the firm’s financial standing. In order to ensure that these standards of accuracy, fairness and consistency are met, a number of accounting concepts and conventions have been developed. While both aim to offer a more realistic and true view of the firm’s financial statements, there are a number of subtle differences between accounting concepts and conventions. The article clearly explains what is meant by accounting concepts and accounting conventions and highlights the similarities and differences between accounting concepts and conventions.
What are Accounting Concepts?
会计概念指一组原则et in place that ensures that accounting information is presented in a true and fair manner. There are a number of concepts that have been established as standard accounting principles. These concepts have been created by professional organizations and may also be backed by law and governing bodies as the standard principles that need to be followed when preparing financial statements. Accounting concepts include the going concern concept, accruals concept, the prudence concept, realization concept, money measurement concept, dual aspect concept, etc.
What are Accounting Conventions?
会计惯例是一组通常被会计师接受并随后被会计师的做法。这些约定是随着时间的推移而建立的，并被遵循作为一种实践，并且可以根据金融景观的变化而改变。会计惯例是通常被认为是规范的实践，并且不会由专业机构或理事组织以正式方式记录或写下。会计约定可以涵盖一系列问题，包括如何在道德上处理情况，面对特定问题时要采取的措施，如何报告和披露特定的敏感信息等。随着新会计问题的兴起，新金融产品以及变化在财务报告格局中，应制定新的公约。惯例的例子包括一致性，客观性，披露等。
What is the difference between Accounting Concepts and Conventions?
会计概念和约定是准备财务报表时的一组标准方法，准则和程序，从而确保以一致，真实，公平和准确的方式准备会计信息。会计概念和公约在全球范围内被接受为财务报告实践的规范。因此，所有根据概念和惯例制备的帐户本质上都是统一的，可以轻松地用于比较和评估。统一性还减少了任何混乱，使其更容易，更容易理解。可能必须制定会计约定，以迎合财务报告格局的变化。这些惯例最终可以成为官方的会计概念，并添加到要遵循的标准列表中。
The main difference between accounting concepts and conventions is that accounting concepts are officially recorded, whereas accounting conventions are not officially recorded and are followed as generally accepted guidelines. Accounting concepts have been established by professional organizations and are standard principles that must be followed when preparing financial accounts. Conventions are generally accepted practices that can change and are updated over time, depending on the changes in the financial reporting landscape.
Summary:
Accounting Concepts vs. Conventions
• Accounting concepts and conventions are a set of standard methodologies, guidelines and procedures when preparing financial statements, thereby ensure that accounting information is prepared in a manner which is consistent, true, fair and accurate.
•会计概念是指设置的一组原则，以确保以真实和公平的方式呈现会计信息。已经建立了许多概念作为标准会计原则。
• Accounting concepts have been created by professional organizations and may also be backed by law and governing bodies as standard principles that must be followed in the preparation of financial statements.
• Accounting conventions are a set of practices that generally are accepted and followed by accountants.
• Accounting conventions are accepted to be the norm and are not recorded or written down in a formal manner by professional bodies or governing organizations.
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