Accounting assumptions are traditions and customs, which have been developed over a period of time and well-accepted by the profession. Basic accounting assumptions provide a foundation for recording the transactions and preparing the financial statements there from.
For our current project for this subject, we need to do the accounting assumption page. During one of our Accounting Information Systems (AIS) class, our lecturer, Sir Noreffendy has explained to us what is accounting assumption really means. The function of accounting assumption is we need to clarify the details of the source documents that we actually needed but we cannot get it from the company. There are several points that we need to consider and state in the accounting assumption page at the end of our UBS project.
1) Not enough information/ Lack of information
- some of company, they have employees that was full time working in the company, and also there are part time worker. Most of the company will not record the salaries of the part time worker, since maybe they are more concern to record the salary of the full time workers. So it will cause a problem for us since we cannot get the salaries of the whole workers in the company.
2) The transaction based on cash basis
- Some company, most of them was doing a transaction based on cash basis. So there will not be any documents that show the transaction or can disclosed that transaction as a prove.
No comments:
Post a Comment