The main purpose of accounting principles is to establish a framework for how financial accounting is recorded and reported on financial statements. Accounting principles are guidelines that companies and other agencies must abide by when reposting their financial data and results. These guidelines and rules must be followed by accountants to ensure that financial data is standardised across borders. It is essential for financial data to be reliable as it acts as a key guide for decision-makers and keeps stakeholders informed.

This course provides a basic understanding of the main accounting principles and assumptions. Generally accepted accounting principles are important because they set the rules for financial reporting and bookkeeping. The ‘International Financial Reporting Standards’ (IFRS) cover most of the world and the ‘Generally Accepted Accounting Principles’ (GAAPs) framework applies in the United States of America. These frameworks serve an important function in maintaining consistency in financial reporting from company to company across all industries, sectors and borders.

This course is a great opportunity for you to learn about financial and economic guidelines that demonstrate the various accounting concepts. The IFRS and GAAP frameworks can help you build accurate statements regarding working cost, revenue and outcome to guide decision-making and keep investors and stakeholders informed, as stipulated by law. Sign up to learn all about the best practices in the world of accounting and the assumptions that inform international bookkeeping standards.