helps uses see similarities and differences between events and conditions.
implies that different knowledgeable and independent measurers would reach consensus regarding whether information is a faithful representation of what it is intended to depict.
important for information to be useful. Information is timely when it’s available to users early enough to allow them to use it in their decision process.
users must be able to comprehend the information within the context of the decision being made.
outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations.
increases in equity from peripheral or incidental transactions of an entity.
All economic events can be identified with a particular economic entity
In the absence of information to the contrary, it is anticipated tat a business entity will continue to operate indefinitely
The life of a company can be divided into artificial time periods to provide timely information to external users
In the US, financial statement elements should be measured in terms of US dollar
Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events
Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events
Equity ( or net assets)
it is the residual interest in the assets of an entity that remains after deducting its liabilities
Inflows or other using up of assets of an entity or settlements of its liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations
Outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations
neutral with respect to parties potentially affected
permits valid comparisons between different periods
if a more costly way of providing information is not expected to have a material effect on decision made by those using the information the less costly method may be acceptable
original transaction value
decreases in equity arising from peripheral or incidental transactions of the entity.