In this post, we’ll go over the 7 Most Important Difference between Accounting Concepts and Accounting Conventions, as well as a lot more.
What is the Difference between Accounting Concepts and Accounting Conventions?
Accounting concepts are principles or concepts that are universally accepted and internationally recognized self-evident rules and practices for accounting.
On the other hand, accounting conventions are the practices that accountants adhere to perform their accounting functions efficiently.
The following are the differences between accounting concepts and accounting conventions:
|Sl No||Subject||Accounting Concepts||Accounting Conventions|
|1.||Recognition||It has international recognition.||It does not have international recognition.|
|2.||Stability||All countries around the world follow the same policy.||It changes as a result of social, state, and political changes in various countries.|
|3.||Widespread use||It is widely used in all countries around the world.||The application of accounting conventions is limited because different conventions are used in different countries around the world.|
|4.||Reason||Logic or argument can be used to determine the reason for its use.||The reason for its use cannot be determined because the argument is not dependent on it.|
|5.||Legislation||Accounting concepts serve as the foundation of accounting law.||Accounting conventions do not form the basis of accounting law.|
|6.||Comprehensive explanation||This provides a comprehensive explanation and support for accounting.||It does not provide a comprehensive explanation or support for accounting.|
|7.||Type||The concepts used in different countries around the world are all the same.||The convention may differ depending on the organization.|
Although the above differences exist between them, they are actually intimately involved. So, it is difficult to distinguish between them.
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