The Entity Concept
The entity concept defines the entity for which accounting data are collected. An accounting entity is an organisation, or a section of an organisation, that stands apart from other organisations and individuals as a separate economic unit for the purpose of some decisions.
From an accounting perspective, only information about transactions relating to the entity is included in its financial statements.
Stable Monetary Unit
The monetary unit is the principal means for measuring assets and equities.
Going Concern Convention
The going concern convention, or continuity convention, is the assumption that in all ordinary situations an entity persists indefinitely.
The materiality convention asserts that a financial statement item is material if its omission or misstatement would tend to mislead the reader of the financial statements under consideration.
The cost-benefit criterion means that as a system is changed, its expected additional benefits should exceed its expected additional costs.