In modern conditions, the accounting principles of enterprises that are used in international practice are used in enterprise accounting. All these principles are used to solve the practical problems of modern management. Conventionally, they can be divided into two groups.
The first group represents the basic principles of accounting, which require certain conditions and do not change. They are also called assumptions:
- The principle of property isolation.
On the balance sheet of the enterprise only its own property is taken into account, which is separate from property owned by employees of the organization and other enterprises.
- The principle of continuous activity.
He says that the company will continue its activities, which is important for lenders who can be calm about paying off obligations in the future. Since the company is not going to either reduce or eliminate its own activities.
- Content prevails over form. Information on a business transaction is very important from an economic point of view.
- Consistency.
The balances on synthetic and analytical accounts on the first day of the month are identical.
The second group presents the basic principles of accounting, which are called requirements:
- The principle of completeness, objectivity
When all business transactions will be reflected in accounting at all stages and confirmed by primary documents.
- The principle of prudence.
At which more attention is paid to expenses, losses and liabilities than to incomes and assets, they do not give the opportunity to overstate assets and incomes, underestimate expenses and liabilities and do not allow the creation of a hidden reserve.
- The principle of consistency.
In this case, the accounting policy of the enterprise is applied sequentially from one reporting period to another, which allows you to receive comparable reports.
Sometimes the principles of accounting clearly show that it is always necessary to flexibly approach and take into account the data provided by the accounting department. For example, the principle of timely provision of information increases its reliability and reliability during a delay, although it makes it simply inappropriate in this case. When concluding contracts and contracts, timely estimated data and profit calculations are more important than providing all the accounting information for the period, but with a big delay.
When a business transaction refers to the reporting period in which it occurred, regardless of payment or receipt of money for this operation. For example, income is reflected in the period when the goods arrived, and not when the payment is made. It also takes into account the principle of conformity, in which incomes are related to expenses in the period when they are received on the basis of these expenses. But the income and expenses of different reporting periods are accounted for separately.
All business transactions are reflected in accounting on the principle of double entry, that is, the same amount is recorded on debit and credit of accounts.
- The principle of periodicity.
Provides a balance sheet and financial result for the reporting period: month, quarter, year.
Almost all organizations of the country apply the following accounting principles in their daily practice, regardless of their activities:
- The principle of monetary measurement, when the unit of measurement is the currency of their country.
- The principle of confidentiality, in which material and criminal liability is provided for the disclosure of the organization's trade secrets.
- The principles of clarity and relevance should help users in their work when making decisions.
- The principle of truthfulness and impartiality gives a real idea of the financial situation of the organization.
All these principles of organization of accounting for both individuals and legal entities contribute to profit and do not contradict the laws of the country.