Accounting principles and concepts: المبادئ والمفاهيم المحاسبيه
A common definition(التعريف الشائع) of the word principles: Abroad general law(قانون) or rule adopted(يتم استخدامها) as a guide(دليل) to Action settled ground or basis of conduct or practice.
consequently, generally accepted accounting
principles (GAAP)(المبادئ المحاسبيه المتعارف عليها) describe it as broad rules adopted by the
accounting profession(المهن المنظمه للمحاسبه) as
a guide in measuring(قياس),
recording(تسجيل) and
reporting the financial affairs(الشئون الماليه) and activities of business to its owners,
creditors and other interested parties.
If a company distributes(نشرت) its financial
statements(القوائم الماليه) to
the public it is required to follow(هذا يتطلب اتباع المبادئ
لمحاسبيه المتعارف عليها) general accepted accounting principle prepration
of those statements. (في اعداد هذه القوائم)
GAAP is exceedingly useful because it attempted to standardise and regulate accounting definitions, assumptions, and methods.
Since GAAP is founded on the basic accounting principles and guidelines we can better understand GAAP if he understands acounting principles as follows:
GAAP is exceedingly useful because it attempted to standardise and regulate accounting definitions, assumptions, and methods.
Since GAAP is founded on the basic accounting principles and guidelines we can better understand GAAP if he understands acounting principles as follows:
1- business entity concept:
Under this concept for accounting services this is
conceived to be and is treated as separate entity separate and distinct from
its owner or owners and from every other business.(كل مشروع يعامل كوحده
منفصله ومستقله عن ممتلكات صاحب المشروع)
Business are so conceived and be treated because in so far as a specific business is concerned the purpose of accounting is to record its transaction and periodically records its financial position and profitability. Consequently, the records and reports of a business should not include either transaction or assets of another business personal assets and transaction of its owner or owners.(يجب الا يتم اظهار ولا تسجيل الممتلكات الشخصيه للمالك في الدفاتر الخاصه بالمشروع)
For example: Personal automobile of business owner should not be included among the assets of his business and its gas,oil ,and repairs should not be treated as an expenses of the Business for to do so distorts the reported financial position and profitability of the business.
Business are so conceived and be treated because in so far as a specific business is concerned the purpose of accounting is to record its transaction and periodically records its financial position and profitability. Consequently, the records and reports of a business should not include either transaction or assets of another business personal assets and transaction of its owner or owners.(يجب الا يتم اظهار ولا تسجيل الممتلكات الشخصيه للمالك في الدفاتر الخاصه بالمشروع)
For example: Personal automobile of business owner should not be included among the assets of his business and its gas,oil ,and repairs should not be treated as an expenses of the Business for to do so distorts the reported financial position and profitability of the business.
2- cost principles(مبدأ التكلفه)
In addition to the business entity concept in accounting principle called the cost principle should be Borne in mind when reading a balance sheet.
Under this principle all goods and services
purchased or recorded at cost and appear on the statement at cost not at market
value
For example:
if a business pays $15,000 for a land to be used in carrying on its operations
the wishes should be recorded at $15,000 it makes no difference is the owner
and several competent outside appraisers sort the land Wars at least $25,000 it
cost $15,000 and should appear on the balance sheet at that amount.
In applying the cost principal costs are measured on a cash or cash equivalent(المعادل للنقديه) basis. If the considration given for an asset or service cost is measured as entire cash outlay made to secure the assets or service(تظهر البضائع او المشتريات بالسعر الذي تم شرائها به و ليس بسعر السوق في الوقت الحاضر)
In applying the cost principal costs are measured on a cash or cash equivalent(المعادل للنقديه) basis. If the considration given for an asset or service cost is measured as entire cash outlay made to secure the assets or service(تظهر البضائع او المشتريات بالسعر الذي تم شرائها به و ليس بسعر السوق في الوقت الحاضر)
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