Description of Assessment Requirements 1 Description Students are Assignment

Description of Assessment Requirements 1 Description Students are required to in full describe 10 Key concepts of accounti - Assignment ExampleInternational be Standards (IAS) no. 1 states that the concepts consume the how the contents of the monetary score reports should be constructed. The conceptual framework of method of chronicle includes the objectives concepts of financial reporting group. The scrap group of concept accounting concepts represents the qualitative characteristics of useful financial information. The third group of conceptual accounting framework concepts includes description, recognition and measurement concepts of the financial reports elements (Alexander, 2008). Discussion In terms of the first objective accounting concept, the financial reports are prepared in order to present the financial data pertaining to the business entities yearly transactions. Consequently, the financial record preparers implement the going concern accounting concept. Th e concept indicates that business entity is assumed to lead its business operations for several(prenominal) years, without any telltale signs of bankruptcy creeping into the doors of the business entity. When bankruptcy issues act up, the going concern concept no longer applies to the business entity. The going concern concept indicates the entity has no plans of folding up or liquidating the business operations within the foreseeable future (Kieso et al., 2011). Relevance Accounting Concept . In terms of the qualitative characteristics group of financial concepts, the financial report accounts should comply with the relevancy concept of financial accounting (Kolitz, 2009). Relevance means that financial data reported is material to the finis making process. The relevant financial data hobo significantly influence the decision makers choices. To be relevant, the financial data should comply with the materiality principle of financial accounting. The financial information is mate rial if the data can change the decision makers choices. For example, the manager gathers data on whether to promote the cashier to treasury department manager. teaching indicating that the cashiers incurred several cash count shortages may prod the managers to reject the proposal to promote the cashier. Completeness Accounting Concept. Further, the financial reports must comply with the completeness concept of accounting. The completeness concept requires the companies to record all transactions in their respective accounting periods. The income statement must present all sales done within the accounting period. The same statement requires that all expenses should be recorded in the year they are used, not during the year when the expense amounts are paid. The company must include all business transactions in the preparation of the financial reports to revoke being charged for fraud or lackluster financial report preparation. Neutral Accounting Concept. Furthermore, the financial reports must implement the neutral concept to f accounting (Morris, 2009). The financial reports serve the needs of several users. The customers use the financial reports to determine if the company will continue to operate for several years. The financial report indicating the company generated a four your net loss amount will impress on the genuine and future customers that the company is on the verge of bankruptcy. Consequently, the company may be forced to close fund within the next few years of business operations. When this happens, the current and future customers are forced to stress other suppliers of their needs and wants. The customers need neutral financial reports for