What Are Accounting Principles?

Accounting principles are the guiding norms for accounting work. Summarize and summarize the basic laws of financial accounting. Such as the principle of robustness, the principle of importance, and so on. In practice, accounting principles are often mixed with accounting standards. The United States first used "accounting principles" and later popularized "accounting standards." This reflects the objective process of historical development to a certain extent, that is, the United States accounting standards have undergone the development from a "limited, guiding" standard (accounting principles) to a "quantitative guiding and technically equal" standard (accounting Guidelines). ^[1]

Accounting principles

China s Ministry of Finance

The general principles of financial accounting refer to the provision of basic requirements for financial accounting, and a high degree of summary of the basic laws of financial accounting. Our country

Changes to the general principles of financial accounting under the new standard

Under the new standard, there are only eight basic principles. The accrual principle, the matching principle, the principle of dividing profitable expenditures and capital expenditures, and the historical cost principle have been abolished. Among them, the principle of importance (Article 17), the principle of prudence (Article 18), the principle of substance over form (Article 16), and the comparability (Article 15) The principle of consistency and comparability are combined into the principle of comparability), relevance (Article 13), clarity (Article 14), timeliness (Article 19), objectivity (Article 12) in principle. Also. Accrual and historical costs are no longer the basic principles of accounting. Integrate the production of accruals as the basis of accounting and incorporate the basic assumptions of accounting instalments. Historical costs are reflected in the measurement of accounting elements. Regulations).