Chapter 2 The Qualitative Characteristics of Financial Information

Accounting practice has developed gradually over time. Many of its procedures are operated automatically by people who have never questioned whether alternative method exist which have equal validity. However, the procedures in common use imply the acceptance of certain concepts which are by no means self-evidence; nor are they the only possible concepts which could be used to build up an accounting framework. In this chapter we shall single out the important assumptions and concepts for discussion.