| Entity | | The characteristic that states that: Reports should contain all relevant information which is useful for decision-making. |
| Asset | | The principle that states that: Transactions should be recorded at their original purchase price. |
| Equity | | The principle that states that: The business is separate from the owner and other entities, and its records should be kept on that basis. |
| Non-current Asset | | The characteristic that states that: Reports should be presented in a manner that makes it easy for the user to comprehend their meaning. |
| Comparability | | The characteristic that states that: Reports should be comparable over time through the use of consistent accounting procedures. |
| Understandability | | The principle that states that: All items must be recorded and reported in the currency of the country of location where the reports are being prepared. |
| Current Liability | | A present obligation of the entity as a result of past events, of which the settlement is expected to result in an outflow of economic benefits in the next 12 months. |
| Non-current Liability | | A resource controlled by the entity as a result of past events, from which future economic benefits are expected. |
| Reliability | | A present obligation of the entity as a result of past events, of which the settlement is expected to result in an outflow of economic benefits. |
| Conservatism | | A present obligation of the entity as a result of past events, of which the settlement is expected to result in an outflow of economic benefits sometime after the next 12 monthss. |
| Monetary Unit | | The principle that states that: The life of the business must be divided into 'periods' of time to allow reports to be prepared. |
| Relevance | | A resource controlled by the entity as a result of past events, from which future economic benefits is expected for 12 months or less. |
| Current Asset | | The principle that states that: The business should use the same accounting methods to allow for the comparison of reports from one period to the next. |
| Going Concern | | The characteristic that states that: Reports should contain information verified by source document evidence. |
| Liability | | The principle that states that: The life of the business is assumed to be continuous, and its records are kept on that basis. |
| Consistency | | A claim on the assets of the firm, consisting of both liabilities and owner's equity. |
| Report Period | | A resource controlled by the entity as a result of past events, from which a future economic benefit is expected for more than 12 months. |
| Historical Cost | | The principle that states that: Losses should be recorded when probable, but gains only when certain. |
