Accounting conventions

Accounting conventions: The term convention denotes customs or traditions which guide the accountant while preparing the accounting statements.
 Convention of consistency: Accounting rules, practices should not change from one year to another.
For example: - If Depreciation on fixed assets is provided on straight line method. It should be done year after year.
 Convention of Full disclosure: All accounting statements should be honestly prepared and full disclosure of all important information should be made. All information which is important to assets, creditors, investors should be disclosued in account statements.

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