posted by Avatar on May 13
T
he principle of regularity is defined as the conformity of the said accounting practices to applicable laws and rules defined by the country’s financial branch (also known as the principle of Consistency). The Principle of sincerity defines the truthfulness of the information as a true description of the company’s financial status. Permanence of records defines the absoluteness and coherence of the company’s financial information which ever way you may look. This states that information is consistent whether inside or outside the company.
The principle of non-compensation simply states that the financial system should have accounting of both income and expenses (debit and credit) which can be traced or checked easily with the provided accounting information.