posted by Avatar on May 9
This is a body of collective knowledge that dictates or outlines the basic principles accounting procedures and practices are to abide by. There are several principles that have to be satisfied by a set of accounting principles and they are; regularity, sincerity, permanence of records, non compensation, prudence, continuity and periodicity. These principles govern most countries of the world with the exception of communist countries that have their own set of rules that governs accounting practices. Most developing countries as well as developed ones adopt a single set of principles that allows one country to deal with the other and vice versa for trade purposes.