会计假设会计英语.ppt

Accounting assumptionAsweallknow,theaccountingassumptionsincludefourelements:theaccountingentityassumption,goingconcernassumption,theaccountingperiodassumption,andmeasuredusingthecurrencyassumptions.Theseassumptionsputforward,thereissomenecessity.Accountingtoachieveitsobjectives,duetotheexternalconstraintsoftheaccountinginformationsystemisextremelycomplexandthelackofstabilityundernormaloperatingconditionsandexternalenvironment,inordertoensurethattheaccountinggoals,wemustmakeareasonablejudgmentandrequest.Therefore,theemergenceofthefouraccountingprinciples.1.Accounting entityeach entity should be accounted for separatelyThe most fundamental concept in accounting is the entity.An accounting entity is an economic unit with identifiable boundaries for which accountants accumulate and report financial information.Before accountants can analyze and report activities,they must identify the particular entity(and its boundaries)for which they are accounting.Every financial report specifies the entity in its heading.Each proprietorship,partnership,and corporation is a separate entity,and separate accounting records should be kept for each unit.In accumulating financial information,we must separate the activities of an accounting entity from the other economic and personal activities of its owners.For example,Matt and Lisa Cook own the Good Cook Inn restaurant as partners.The Good Cook Inn partnership is an accounting entity.Matt Cook is also an attorney whose activities constitute a proprietorship.Therefore,he keeps a set of accounting records for his legal activities separate from Good Cook Inns records of its business activities.Lisa Cooks activities as a realtor also constitute a proprietorship.She keeps a set of accounting records for her reality activities separate from both records of Good Cook Inn and of Matt Cook,attorney.The entity concept does not negate the legal fact that an all inclusive legal liability exists in proprietorships and partnerships.In other words,business assets are available to personal creditors,and business creditors may have legal access to both business and personal assets in these noncorporate business organizations.2.Accounting PeriodAccounting reports relate to specific periodstypically one year.The operation of most business are virtually continuous except for some changes associated with cyclical time periods,seasons,or dates.Thus,any division of the total life of a business into segments based on annual periods is somewhat artificial.However,the idea of accounting periods is useful.Many taxes are assessed on an annual basis,and comprehensive reports to corporation stockholders are made annually.In addition,many other noneconomic factors tend to consider the year a natural division of time.3.Going ConcernIn the absence of evidence to the contrary,a business is assumed to have an indefinite life.With few exceptions,business organizations have no anticipated termination date.Most firms operate profitably for indefinite periods and are,in fact,going concerns.Fims that do not succeed usually have indications of impending termination for some time before operations actually cease.The going concern assumption has important implications for accounting procedures.It allows firms to defer costssuch as ending inventories,prepaid expenses and undepreciated assets balancesthat will be charged against the revenue of future periods.Furthermore,the going concern concept assumes the use of cost-based accounting measures rather than market-based liquidation values.Firm that expect to continue profitable operations do not ordinarily sell their operating assets;therefore,potential liquidation prices for these assets at the end of an accounting period may not be especially relevant.In this sense,the going concern assumption justifies the use of historical cost as the primary basis for accounting entries.4.Measuring UnitThe unit of measure in accounting is the base money unit of the most relevant currency.Although other descriptive information is often relevant,money is the common measure for recording accounting transactions.By expressing all assets and equities in terms of money,the accountant creates a common denominator that permits addition and subtraction of all forms of assets and equities and makes possible the preparation of financial statements.Expressing all statement items in money terms also permits the comparison of(1)various elements in the financial statements of a firm,(2)different sets of statement for the same firm,and(3)the statements of two or more firms.This principle also assumes that the unit of measure is stable;that is,changes in its general purchasing power are not considers sufficiently important to require adjustments to the basic financial statements.