What are the accounting principles
The principles of accounting represent regulations developed through commercial practice and concretized through case law, which are constantly evolving in accordance with the current conditions.
Principles of proper accounting
The principles of accounting can be understood as principles of proper bookkeeping in the broader sense. You refer z. B. on:
- clarity, ie the information must be clear.
- Verifiability, ie expert third parties must be able to verify the information.
- accuracy, ie only relevant information is to be used.
- economics, ie the costs and benefits of the information correspond.
- caution, e.g. B. in the context of the valuation of assets.
- continuity, ie consistent application of rules over several periods.
- Receipt principle, ie no posting without a receipt.
The principles mentioned are of central importance in the context of bookkeeping and annual financial statements.