What are the basic assumptions of accounting What are the basic assumptions of accounting

The basic assumptions of <> accounting are reasonable assumptions made about the time and space scope of accounting and the main units of measurement used, which are the prerequisites for enterprise accounting recognition, measurement, recording and reporting. Accounting assumptions play an important role and significance in the performance of accounting functions and the realization of accounting objectives. The basic assumptions of accounting are divided into:

1.Accounting Entity (Spatial Scope)Accounting entity refers to the specific object of accounting services, which is the spatial scope of enterprise accounting confirmation, measurement, recording and reporting, reflecting the various production and business activities and other related activities engaged in by the enterprise itself. The accounting entity can be a specific enterprise or a specific part of an enterprise (e.g

branches, branches, subsidiaries, etc.), and can even be a group of companies composed of several enterprises. It should be noted that accounting subjects and legal subjects are not equivalent concepts, and accounting subjects are not equivalent to legal subjects, and legal subjects can usually be accounting subjects, but accounting subjects are not necessarily legal subjects. 2.

Going concern (time frame)A going concern means that the business will continue to operate at its current size and status for the foreseeable future, without going out of business or making significant cuts. Going concern is the basis of accounting periodization, and a series of accounting methods and principles of an enterprise are based on the principle of going concern. 3.

Accounting periodsAccounting periodization refers to the division of the production and operation activities of an enterprise into continuous periods of the same length. The purpose of accounting periodization is to settle profits and losses in installments and prepare financial reports on a regular basis, so as to provide financial report users with information about the financial status, operating results, and cash flow of enterprises in a timely manner, so as to facilitate financial report users to make decisions. Because of the accounting periods, there is a difference between the current period and other periods, thus forming a distinction between the accrual basis and the cash basis.

The accounting period is usually divided into annual (China's accounting year is from January 1 to December 31 of the Gregorian calendar year) and interim (monthly, quarterly, semi-annual). 4.Monetary measurementMonetary measurement refers to the fact that the accounting entity mainly uses currency as the unit of measurement when confirming, measuring, recording and reporting in accounting, so as to reflect the process and results of the production and business activities of the accounting entity.

The use of monetary units of measurement for accounting and supervision does not exclude the use of other units of measurement, and other units of measurement may make necessary additions and explanations to monetary units of measurement. China's accounting should be based on RMB as the base currency of accounting, and enterprises with business income and expenditure based on foreign currency can also choose a certain foreign currency as the base currency of accounting, but the prepared financial accounting report should be converted into RMB to reflect; The financial and accounting reports submitted by Chinese enterprises established overseas shall be converted into RMB.

The basic assumptions of accounting include accounting entities, going concern, periodization and monetary measurement.

1. The accounting subject refers to the specific unit of accounting work services, which is the spatial scope of enterprise accounting confirmation, measurement and reporting. In order to reflect the financial status, operating results and cash flow of the company to the users of financial reports, and to provide useful information for their decision-making. In order to achieve the objectives of financial reporting, accounting and financial reporting should focus on activities that reflect specific objects and distinguish them from other economic entities.

It is the accounting entity that defines the spatial scope of accounting recognition, measurement and reporting in the basic assumptions of accounting.

2. Continuing operation means that the production and business activities of the accounting entity will continue indefinitely and will not go out of business for settlement in the foreseeable future. Under the premise of going concern, accounting confirmation, measurement and reporting should be based on the continuous and normal production and operation activities of the enterprise.

3. Accounting periodization refers to the division of the production and operation activities of an enterprise into continuous periods of the same length. The purpose of accounting periodization is to divide the production and operation activities of continuous operation into continuous and equal periods through the division of accounting periods, so as to settle profits and losses and reduce financial reports on a regular basis, so as to provide users with information about the financial status, operating results and cash flow of enterprises in a timely manner.

4. Monetary measurement refers to the monetary measurement of the accounting entity in the financial accounting recognition, measurement and reporting, reflecting the financial status, operating results and cash flow of the accounting entity. (Desktops and computers should be converted into currencies to add up the clear value).

There are four accounting assumptions put forward in China's basic standards: accounting entity, going concern, accounting periodization, and monetary measurement.

A separate entity is a specific and independent economic entity that provides accounting services. In other words, the accounting subject refers to the object of accounting services.

Continuity means that the company will not face bankruptcy and liquidation in the foreseeable future, but will continue to operate.

In order to meet the periodic needs of report users for financial information, artificially dividing the continuous business process into several periods is called time period.

The premise of monetary measurement (unit-of-measure) refers to the measurement of the accounting measurement and reporting of the economic activities of the accounting entity with the unit of measurement of currency as the unit of measurement of the accounting entity.

The basic assumptions of accounting mainly include the accounting entity.

Going concern, accounting periodization.

and monetary measurement. Each assumption has detailed content and requirements, which accountants must understand and be familiar with in their work.

1. Basic assumptions of accounting.

1. Accounting entity: It mainly refers to the specific object of accounting work services, and is also a spatial scope of accounting confirmation measurement and reporting.

2. Continuing operation: It means that in the foreseeable time, the enterprise will continue to operate according to the current scale and state, and there will be no closure and large-scale business reduction.

3. Accounting periodization: refers to the division of the production and operation activities of an enterprise into continuous periods of the same length.

4. Monetary measurement: It mainly refers to the fact that the accounting entity is measured in currency to reflect the production and operation activities of the accounting entity when the accounting is confirmed, measured and reported.

2. Basic accounting assumptions.

meaning. The basic assumptions of accounting are the premise of enterprise accounting recognition, measurement, recording and reporting, and it is also for accounting.

A reasonable setting of the space and time environment. It refers to a basic assumption made about the scope, content, basic procedures and methods of accounting in order to ensure the normal progress of accounting work and the quality of accounting information.

The basic assumptions of accounting have their meaning, and they also have their importance. Therefore, as an accountant, you must do a good job of accounting assumptions, which will be of great help to accounting.

Four. Accounting entity.

Accounting periodization. Going concern.

Monetary measurements.

The basic assumptions of accounting are the assumptions for accounting recognition, measurement and reporting. It includes: accounting entities, going concern, accounting periods, and monetary measurements. Paragraph dress.

The first basic assumption: the accounting entity.

Accounting subject: refers to the specific object of accounting work service, which defines the spatial scope. It tells us who should be accounted for.

The second fundamental assumption: going concern.

Going concern means that the business will continue to operate at its current size and status for the foreseeable future, without going out of business or making significant cuts. What it defines is the time frame.

The third basic assumption: accounting periodization.

Accounting periodization: It is to divide the continuing activities of an enterprise into continuous periods of the same length. It also defines the time frame. Accounting staging is an artificial sensitive period. It is divided into: annual, interim (monthly, quarterly, and semi-annual).

The fourth basic assumption: monetary measurement.

Monetary measurement tells us that we must choose the same scale of currency for measurement, in order to comprehensively and comprehensively reflect the production and operation of the enterprise.

The base currency of our country is the RMB. Units whose revenue and expenditure operations are mainly in currencies other than RMB may also choose one of the currencies as the base currency of accounting, but when submitting financial reports, they must be converted into RMB.