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Finance and Accounting Examination Guidance: Accounting accounting assumptions underlying assumptions

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					Finance and Accounting Examination Guidance: Accounting basic assumptions
accounting assumptions

 basic assumption of the principal accounting

  accounting assumption is that organizations should have the accounting prerequisite.
The basic accounting assumptions include: accounting entity, going concern,
accounting stage and monetary measures.
  (1) accounting entity
  1. Accounting entity is served by a particular unit of accounting, accounting should
be a specific independent or relatively independent business unit of business activity
for the object, its own transactions or events occurring Jinxing accounting recognition,
measurement and reporting. Typical is the main business accounting, but can also be
relatively independent enterprise business units.
  accounting entity concept is different from the subject of law, accounting entity can
be a separate legal entity, such as enterprise legal person; also not a separate legal
entity, such as the relative independence of internal accounting units, the number of
enterprises corporate form of enterprise groups.
  2. Accounting provides accounting content of the main room area. For example, a
Company Limited 31 December 2007 amounted to 10 million yuan of assets, which
all belong to a company's assets as a company's assets should be accounted for,
without a defined range, it is impossible to determine the total amount of assets.
  (b) continuing operations
  1. Continuing operations is the corporate accounting recognition, measurement and
reporting should be business continuity, the normal production and operating
activities as a precondition.
  2. With the premise of a going concern, the comparability of accounting information,
accounting information such as quality requirements can be met, the historical cost
accounting measurement attributes to the role of enterprises in information collection
and handling of the accounting methods used to maintain a stable, accounting to
normal. For example, in a market economy, enterprises there is always the risk of
liquidation, the liquidation once the business becomes insolvent, all premised on
continuing operations of accounting procedures and methods no longer apply and the
liquidation should be adopted accounting procedures and methods.
  (c) Accounting period
  1. Accounting period refers to the ongoing operations in the business process, the
artificial division of one by one pitch equal, end to end phase of the accounting period
in order to determine the income of each accounting period, expenses and gains and
losses, determine the accounting period beginning and ending of assets, liabilities and
equity amount, and according to the balance sheet accounts and preparation of
financial statements. Accounting period of time provided the scope of accounting.
  2. Business accounting period should be divided in phases and the preparation of
financial reports balance sheet accounts. Divided into annual and interim accounting
period. To year is often referred to as the fiscal year accounting period. In China, to
calendar year as the company's fiscal year, that is the Gregorian calendar January 1
until December 31 only, in the year, then divided into quarters and such a short period
of the month, which is shorter than a full fiscal year The report referred to as
medium-term period.
 (4) currency measured
 1. Monetary measure is an enterprise accounting a currency as unit of measurement,
recording, reflect an enterprise's economic activities, and assuming constant currency
Bao Chi.
 2. Business accounting using money as the best unit of measurement of economic
activity, if the business enterprise's economic situation in the coexistence of a variety
of currencies, we need to define a currency as its functional currency. Functional
currency, in which firms operate is the primary economic environment in the currency.
China's accounting standards, firms should normally be chosen as the functional
currency of RMB. Business income and expenditure in currencies other than
RMB-based business, you can select a currency as its functional currency. However,
the preparation and reporting of financial statements shall be translated into.
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