Accounting Principles: Second Canadian Edition
Accounting Principles: Second Canadian Edition
Principles
Second Canadian Edition
Weygandt Kieso Kimmel Trenholm
Prepared by:
Carole Bowman, Sheridan College
CHAPTER
12
ACCOUNTING PRINCIPLES
CONCEPTUAL FRAMEWORK
OF ACCOUNTING
Generally accepted accounting principles are a
set of rules and practices that are recognized as a
general guide for financial reporting purposes.
Generally accepted means that these principles
must have substantial authoritative support.
The Canadian Institute of Chartered
Accountants (CICA) is responsible for
developing accounting principles in Canada.
CICAS CONCEPTUAL
FRAMEWORK
Customer satisfaction
Should not be
included in Percentage of
accounting records international employees
Should be included
in accounting records Salaries paid
ECONOMIC ENTITY ASSUMPTION
Revenue
Percent Complete
(Current Period) Total Revenue = Recognized
(Current Period)
Gross Profit
Gross Profit Cash Collections = Recognized
Margin from Customer
during the period
MATCHING PRINCIPLE
Qualitative
Elements of
Characteristics of
Financial Statements
Accounting Information
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