![]() This principle provides information that is reliable (removing opportunity to provide subjective and potentially biased market values), but not very relevant. Historical cost principle: requires companies to account and report assets and liabilities acquisition costs rather than fair market value.Time-period principle: implies that the economic activities of an enterprise can be divided into artificial time periods.The FASB accepts the nominal value of the US Dollar as the monetary unit of record unadjusted for inflation. Monetary Unit principle: assumes a stable currency is going to be the unit of record.The business will continue to exist in the unforeseeable future. Only when liquidation is certain this assumption is not applicable. This validates the methods of asset capitalization, depreciation, and amortization. Going Concern: assumes that the business will be in operation indefinitely.Revenue and expense should be kept separate from personal expenses. Business Entity: assumes that the business is separate from its owners or other businesses.To achieve basic objectives and implement fundamental qualities, GAAP has four basic assumptions, four basic principles, and five basic constraints. When the changes will be effective and the transition method.GAAP and background information related to the change GAAP, including each specific amendment to the FASB Codification The FASB issues an Accounting Standards Update (Update or ASU) to communicate changes to the FASB Codification, including changes to non-authoritative SEC content. Accounting textbooks, handbooks, and articles.Technical Information Service Inquiries and Replies included in AICPA Technical Practice Aids.Pronouncements of professional associations or regulatory agencies.International Financial Reporting Standards of the International Accounting Standards Board. ![]() American Institute of Certified Public Accountants (AICPA) Issues Papers. ![]()
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