Post by account_disabled on Mar 13, 2024 4:57:21 GMT
Regulated by the IAI (Indonesian Accounting Association). IAI is a body that regulates accounting regulations and policies in Indonesia. The following are basic accounting principles contained in accounting regulations. . Principle of Economic Entity Based on this principle, a company is defined as a business entity, either independent or separate from an economic entity. In other words, assets owned by a company must be separated from personal assets. In this way, recording financial transactions must also be differentiated between recording personal and company property. Also read: Definition of Company Equity, Types, Examples and Importance for Business . Accounting Period Principles One of the basic principles of accounting is also called the time period principle.
This means that the assessment and financial reporting of a company is limited by a certain time period. This aims to make the resulting financial reports easy to understand and better measurable. . Principle of Monetary Units In this Bulk Lead principle, the recording of financial transactions is only expressed and measured in currency. This means that this principle does not involve qualitative factors such as quality, performance, achievement, etc. because they cannot be measured in terms of money. . Principle of Business Continuity The definition of this principle is that a business will run consistently and continuously without stopping the business. Unless, if the business or business has problems that could cause the business to stop.
Historical Cost Principle Historical Cost Principle illustration of basic accounting principles. source envato The historical cost principle has meaning if the recording of financial transactions for an item has been obtained by a company. So the financial records are based on the various costs incurred to obtain the goods. If there is a bargaining process, then the price recorded is the price agreed upon by both parties. . Full Disclosure Principle In presenting information, financial reports must have the principle of full disclosure of information. If there is information that cannot be included in the financial report, then you can write additional information in the form of footnotes or attachments. Also read: Banking Accounting: Definition, Principles and Benefits.
This means that the assessment and financial reporting of a company is limited by a certain time period. This aims to make the resulting financial reports easy to understand and better measurable. . Principle of Monetary Units In this Bulk Lead principle, the recording of financial transactions is only expressed and measured in currency. This means that this principle does not involve qualitative factors such as quality, performance, achievement, etc. because they cannot be measured in terms of money. . Principle of Business Continuity The definition of this principle is that a business will run consistently and continuously without stopping the business. Unless, if the business or business has problems that could cause the business to stop.
Historical Cost Principle Historical Cost Principle illustration of basic accounting principles. source envato The historical cost principle has meaning if the recording of financial transactions for an item has been obtained by a company. So the financial records are based on the various costs incurred to obtain the goods. If there is a bargaining process, then the price recorded is the price agreed upon by both parties. . Full Disclosure Principle In presenting information, financial reports must have the principle of full disclosure of information. If there is information that cannot be included in the financial report, then you can write additional information in the form of footnotes or attachments. Also read: Banking Accounting: Definition, Principles and Benefits.