WHAT ARE THE UNDERLYING ASSUMPTIONS AND CONSTRAINTS IN THE PREPARATION OF THE FINANCIAL STATEMENT. ALSO EXPLAIN WHAT ARE THE DIFFERENCE BETWEEN ACCOUNTING POLICIES AND ACCOUNTING PRINCIPLES.

Tweet When preparing and presenting the financial statements, there is a common understanding of the underlying assumptions and constraints. Underlying assumptions are those principles, concepts or practice that entitiesĀ  are assumed to apply when preparing the company’s financial statement which are as follows: Accrual basis which requires transactions and events to be recognized when they […]