Accounting Principle
/ˈæk.aʊn.tɪŋ ˈprɪn.sɪ.pəl/
Definitions
- (n.) A foundational rule or guideline in financial reporting that governs how transactions and events should be recognized, measured, and presented in financial statements.
The accounting principle of consistency requires companies to apply the same methods from period to period.
Forms
- accounting principle
- accounting principles
Related terms
See also
Commentary
Accounting principles serve as the legal and regulatory framework guiding the preparation of financial disclosures essential for transparency and compliance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.