Accounting Principles Flashcards
1
Q
Key parts of GAAP
A
. True and fair
. Accruals timing - income & expenses recorded when incurred, not paid
. Going concern - assumption business will continue to run
. Consistency across periods
. Prudence
. Materiality - significant items only
. Separate entity - business is sep from its owners
2
Q
How are UK business split
A
By size
FRS102 - standard
FRS105 - simplified for micro entities
IFRS - listed companies and larger
