Accounting Principle

What Does the South African Institute of Chartered Accountants(SAICA) do?

Similar to the world, South Africa also has its own Institute of Chartered Accountants called the South African Institute of Chartered Accountants. Many people ask about the difference between chartered accountancy and the other accounting fields. It’s a commonly asked question what does the South African Institute of Chartered Accountants (SAICA) do? Before we get …

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What Wages Are Subject To Social Security and Medicare IRS Tax?

Every year, you have to pay income taxes, sales taxes, and a lot of other business taxes. It’s complex to understand the taxation system and how individuals are taxed by IRS. However, the complexity doesn’t undermine the need to understand taxes and how the taxes are applied. When we talk about businesses, payroll taxes are …

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Why Income Statement is Important? 5 Points You Should Know

Investors invest in companies expecting returns and income. Usually, companies pay dividends which can constitute earnings for investors. On top of that, some companies may also provide capital gains through increasing share prices. However, investors must first investigate the company to ensure it can offer those returns. The primary source they can use is the …

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Principles Of Financial Accounting (The Key Principle You Should Kow)

Companies need to follow accounting principles and guidelines while reporting financial information. Generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) provide principles and procedures to guide the preparation of financial statements. IFRSs are standardized accounting principles adopted by countries across the world. Historically, there have been locally accepted accounting regulations. However, the …

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What are the Principles of Accounting?

Basic Principles of Accounting are important guidelines that are followed to ensure that all businesses have financial statements prepared similarly. In this regard, it is rudimentary to understand that these guidelines are mostly unanimously applied across accounting bodies of all countries, which follow the IFRS (International Financial Reporting Standards). What is meant by Accounting Principles? …

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What Does Materiality Mean in Accounting? (Definition, Explanation, and Examples)

Definition of Materiality Materiality is one of the most important concepts in accounting. It is simply a measure of the impact of any financial misstatement on the decision-making ability of the given user. In this regard, it is important to note the fact that materiality is not a single ballpark figure. In fact, it is …

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What are Accounting Conventions? What Are the 4 Accounting Conventions?

Definition: Accounting conventions are a set of industry best practices adapted by company requirements to serve as guidelines to record financial transactions of the company. The accounting conventions play a crucial role in the transition to record financial transactions as per accounting standards in the company’s accounting system. Accounting conventions do not have any legal …

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