Reports should contain information verified by source document evidence

Reports should be presented in a manner that makes it easy for the user to comprehend meaning

To understand the meaning of the reported information it is necessary to use a common unit

Reports should include all information which is useful for decision making.

The accounting methods used by the business should be applied consistently each period

Reports should be able to be compared over time through the use of consistent procedures

All transactions are recorded at their original value.

The ongoing life of a business is broken into regular intervals for the preparation of reports.

It is assumed that the business will be ongoing, i.e. the business will have an indefinite life

Gains will not be recognised until earned, losses will be recognised as soon as they are likely

The business must be a separate accounting entity from its owner and from other entities.