accounting principle


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Noun1.accounting principle - a principle that governs current accounting practice and that is used as a reference to determine the appropriate treatment of complex transactionsaccounting principle - a principle that governs current accounting practice and that is used as a reference to determine the appropriate treatment of complex transactions
principle - a rule or standard especially of good behavior; "a man of principle"; "he will not violate his principles"
GAAP, generally accepted accounting principles - a collection of rules and procedures and conventions that define accepted accounting practice; includes broad guidelines as well as detailed procedures
References in periodicals archive ?
communicate appropriately in the auditor's report when the comparability of financial statements between periods has been materially affected by a change in accounting principle or by adjustments to correct a material misstatement in previously issued financial statements.
For full year 2006 the company reported a net profit, before the cumulative effect of the change in accounting principle, of USD303m, which compares to a net loss, before the cumulative effect of the change in accounting principle, of USD335m.
The crucial controversy with that approach is how to establish an accounting principle that serves to divide all contracts into discrete, identifiable, measurable components, and then establish how and when to recognize an accurate value for each.
A change in accounting principle occurs when a company changes from one generally accepted accounting principle (GAAP) to another generally accepted accounting principle.
If the accounting treatment for a transaction or other event is not specified by a pronouncement in category (a), a governmental entity should consider whether the accounting treatment is specified by an accounting principle from a source in another category In such cases, if categories (b)-(d) contain accounting principles that specify accounting treatments for a transaction or other event, the governmental entity should follow the accounting treatment specified by the accounting principle from the source in the highest category--for example, follow category (b) treatment over category (c) treatment.
The new US Airways Group Inc (NYSE: LCC) has reported a first quarter 2006 profit before the cumulative effect of a change in accounting principle of USD64m.
SFAS 154 calls for "retrospective application" for voluntary changes in accounting principle. This standard uses the term "restatement" to refer to revision of previously issued financial statements to correct an error.
The statement (available from www.fasb.org) applies to all voluntary changes in accounting principle, and changes the requirements for accounting for and reporting of a change in accounting principle.
154, Accounting Changes and Error Corrections, which applies to all voluntary changes in accounting principle, and changes the requirements for accounting for and reporting of a change in accounting principle.
In circumstances where there are no established accounting principles for reporting a specific transaction or event, the transaction or event may be reported on the basis of its economic substance by selecting an accounting principle that appears more appropriate when applied in a manner similar to the application of an established accounting principle to an analogous transaction or event.
20, which required that changes in accounting principle generally be recognized by including the cumulative effect of changing to a new accounting principle on the last line prior to net income (that is, a current-period approach).
In 1987, the ASB proposed implementation of the Cohen Commission's recommendations, 1) to eliminate the reference to consistency, in the standard audit report and 2) to eliminate consistency modifications when a change in accounting principle occurred.

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