Code of ethics of accounting is a guideline of
attitudes, behavior and deeds in carrying out tasks and in daily life in the
accounting profession. Accounting ethics code can be a balancer of the negative
aspects of the accounting profession, so the code of ethics as a compass that
shows the moral direction for a profession and at the same time ensures the
moral quality of the accounting profession in the eyes of society
Professional
ethics consists of five dimensions, among others:
- Personality
- Professional skills
- Responsibility
- Implementation of code of ethics
- Interpretation and refinement of the code of ethics
10 Accounting Principles
- Economic Entity Principle
The
principle of economic entity is also called the unity principle of entity. This
principle recognizes the unity concept of a company's business. That is, that a
company is a business entity or an economy that stands alone and separated from
the owner or other economic entities.
- Period Principle
The
principle of the accounting stage is also called the principle of time. The
meaning of this principle is the term and financial reporting of business
entities with a certain period. This principle serves to produce measurable financial
information. The commonly used period is 1 year, ie from 1 January to 31
December.
- Unit Monetary Principle
The
working principle is the recording of transactions in the form of money without
factors. Examples of non-formal factors such as performance, quality,
performance, strategy, and so forth. These factors are not included in the unit
of money because they can not be used in the money process.
- Historical Cost Principle
The principle of historical cost requires the assessment or recording of
financial transactions of a good or service on the basis of the costs incurred
in obtaining the goods or services. If there is a bargaining process when a
transaction occurs, then the assessed and recorded are mutually agreed-upon
prices.
- Going Concern Principle
The
principle of business continuity assumes that a business entity will operate
continuously and sustainably. Because there is no company who wants his
business will stop in the middle of the road, except for certain events such as
natural disasters.
- Full Disclosure Principle
The principle of full disclosure is the accounting principle that provides complete and
informative financial information. Because remembering the number of users accounting
information.
- Revenue Recognition Principle
Revenue is the addition of wealth that occurs as a result of business activities such as sales,
rentals, revenue-sharing, and so forth. The basis used to measure income is the amount
of cash or cash equivalents earned on such financial transactions.
- Matching Principle
The Principle of Fellowship means that the costs incurred by the company are met or
matched with the income received. The point is to determine the net income value of
each period. This principle relies heavily on the principle of revenue recognition.
Because if the income recognition is postponed, the charging is not possible.
- Consistency Principle
The principle of consistency is the accounting principle that should be used in financial
reporting consistently or unchanged in terms of the methods, procedures and policies used.
The purpose of the financial statements produced in a period can be compared with the
financial statements of previous periods, so that it can provide benefits for its users.
10. Materiality Principle
The principle of materiality is the principle that recognizes the measurement and
recording of the accounting material or value. Worth in terms of nominal value and
can be sold. If it is not material, it should not be assessed and acknowledged.
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