Pembahasan Ujian PAI: A40 – No. 1 – November 2010

Principles for maintaining accounts :

• Cost concept : a company uses the historical cost paid for an asset in its financial statements
• Mesuring unit concepts : a company records its business transaction in monetary terms
• Full disclosure concept : a company report all necessary information so that interested users are not misled
• Time period concepts : a company reports its business transactions during a specified accounting period
• Realization principles : a company recognizes revenue when it is earned, regardless of when the company receives cash for its business transaction
• Matching principle : a company recognizes expenses when the company earns the revenue related to those expenses, regardless of when the company receives cash for its business transaction

^[1] Mulligan, E. and Stone, G. (1997). Accounting and financial reporting in life and health insurance companies. Atlanta, Ga.: Life Management Institute, LOMA.