The Accounting entity convention regards a business as having a separate existence from the owner.
Accounting entity: business’s transactions are recorded separately from the private transaction of the owner
the monetary convention states that an item must be able to be assigned a monetary value before it is recorded in an accounting system. For example, currency in Australia must be receipted in AUD$
The historical cost convention assumes that business transactions are recorded in terms of their cost at the time of transaction. Meaning no adj are made for inflation or value loss
Materiality refers to the importance Of a particular entity
Information is material if the omission or misstatement of this information from a report could influence investment decisions of users
The accounting period convention requires that the life of a business be divided into equal accounting periods of time for reporting purposes
The going concern convention assumes that the business will continue to operate for the foreseeable future and its records should.
