Accounting Convention
Barron's Accounting Dictionary:
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Accounting Convention
Methods or procedures employed generally by accounting practitioners. They are based on custom and are subject to change as new developments arise. A new accounting or tax requirement, such as an SEC accounting series release (asr), may make a convention inappropriate. The accountant in performing the reporting function should follow existing accounting conventions that apply to the given situation.
See also accounting principles.
See also accounting principles.
| Accounting Control, Accounting Change and Error Corrections, Accounting | |
| Accounting Cushion, Accounting Cycle, Accounting Entity |
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Accounting Convention
Investopedia Financial Dictionary:
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Accounting Convention
Guidelines that arise from the practical application of accounting principles. An accounting convention is not a legally-binding practice; rather, it is a generally-accepted convention based on customs, and is designed to help accountants overcome practical problems that arise out of the preparation of financial statements. As customs change, so to will accounting conventions.
Investopedia Says:
If an oversight organization, such as the Securities and Exchange Commission (SEC) or the Financial Accounting Standards Board (FASB) set forth a guideline that addresses the same topic as the accounting convention, the accounting convention will no longer be applicable. Basically, conventions fill in the gaps between guidelines and practical usage.
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Barron's Accounting Dictionary
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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