Concepts vs Conventions

AFM Basic Accountancy Procedures Free JAIIB Capsule 28 views Updated 16 Sep 2026

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AFM · Basic Accountancy Procedures

In basic accountancy procedures, how do 'Accounting Concepts' differ from 'Accounting Conventions'?

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Concepts are basic scientific rules for recording transactions. Conventions are customs and traditions accepted for preparing financial statements.

Concepts maintain continuity and comparability (e.g., Cost, Dual Aspect). Conventions guide the reporting phase (e.g., Conservatism, Materiality).

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Concepts vs Conventions — Full Text

In basic accountancy procedures, how do 'Accounting Concepts' differ from 'Accounting Conventions'?

Answer

Concepts are basic scientific rules for recording transactions. Conventions are customs and traditions accepted for preparing financial statements.

Additional notes

Concepts maintain continuity and comparability (e.g., Cost, Dual Aspect). Conventions guide the reporting phase (e.g., Conservatism, Materiality).

Part of Accounting & Financial Management for Bankers · Basic Accountancy Procedures · Last updated 16 Sep 2026

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