The Institute of Certified Public Accountants of Kenya

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- Timeliness of Accounting Information

Timeliness principle in accounting refers to the need for accounting information to be presented to the users in time to fulfill their decision making needs.

- Neutrality

Information contained in the financial statements must be free from bias. It should reflect a balanced view of the affairs of the company without attempting to present them in a favored light. Information may be deliberately biased or systematically biased.

- Faithful Representation

Information presented in the financial statements should faithfully represent the transaction and events that occur during a period. Faithfull representation requires that transactions and events should be accounted for in a manner that represents their true economic substance rather than the mere legal form. This concept is known as Substance over Form.

- Prudence

Readiness of money related proclamations requires the utilization of expert judgment in the appropriation of bookkeeping arrangements and appraisals. Reasonability requires that bookkeepers should practice a level of alert in the reception of approaches and noteworthy gauges with the end goal that the benefits and wage of the element are not exaggerated though risk and costs are not under expressed. The method of reasoning behind judiciousness is that an organization ought not to perceive a benefit at an esteem that is higher than the sum which is relied upon to be recuperated from its deal or utilize. On the other hand, liabilities of a substance ought not to be displayed beneath the sum that is probably going to be paid in its regard later on.

There is an innate hazard that benefits and pay of a substance will probably be exaggerated than downplayed by the administration though liabilities and costs will probably be downplayed. The hazard emerges from the way that organizations frequently advantage from better detailed gainfulness and lower outfitting as less expensive wellspring of back and higher offer cost. There is a hazard that use offered in the decision of bookkeeping arrangements and evaluations may bring about predisposition in the planning of the money related proclamations went for enhancing benefit and budgetary position using imaginative bookkeeping procedures. Reasonability idea guarantees that such inclination is countered by requiring the activity of alert in landing at gauges and the selection of bookkeeping arrangements.

- Completeness

Unwavering quality of data contained in the money related articulations is accomplished just if finish budgetary data is given significant to the business and monetary basic leadership needs of the clients. In this way, data must be finished in every single material regard. Fragmented data diminishes not just the pertinence of the money related explanations; it likewise diminishes its dependability since clients will construct their choices in light of data which just shows a fractional perspective of the undertakings of the substance.

- Single Economic Entity Concept

Single Economic Entity Concept proposes that organizations related with each other through the righteousness of basic control work as a solitary monetary unit and along these lines the combined budgetary proclamations of a gathering of organizations ought to mirror the embodiment of such game plan.

- Money Measurement Concept

Cash Measurement Concept in bookkeeping, otherwise called Measurability Concept, implies that exclusive exchanges and occasions that are fit for being measured in money related terms are perceived in the monetary articulations.

- Explain the purpose of professional code of ethics

Motivation and Guidance

Codes give a positive jolt to moral lead and accommodating direction and exhortation concerning the fundamental commitments of the individuals from the gathering to which it applies. By and large, a code will start with expansive responsibilities. The rest of the elements of the code add to the improvement and translation of these duties. It's just plain obvious, for instance, the American Medical Association's Code of Medical Ethics. The Code is organized in a way that closer views the more broad beliefs and responsibilities, which are laid out in the "Standards of Medical Ethics" segment. Each of the accompanying Chapters, then, gives inside and out direction on subjects ethically significant to medicinal morals. More particular bearings might be given in supplementary explanations or rules, for example, one finds in the Ethical Guidelines for Organ Transplantation. These supplementary rules help in the application and elucidation of codes in specific conditions.

Support

Codes give positive help to those trying to act morally. A freely broadcasted code permits a man who is under strain to act dishonestly to state: "I am bound by the code of morals of my calling, which expresses that… “This gives a level of gathering collaboration in taking stands on moral issues. Also, codes can conceivably fill in as lawful help in official courtrooms for those looking to meet business related good commitments. Snap here to peruse a contextual analysis that includes strife between what a director asks of an expert and what her calling requires.

Prevention and Discipline

Codes can fill in as the formal reason for examining deceptive direct. Where such examination is conceivable, reasonability turns into an intention in acting morally. Every so often, infringement of morals codes are justification for the disavowal of the capacity to hone professionally, for example, one finds with the part of the American Bar Association's Model Rules of Professional Conduct in disbarment methods.

Instruction and Mutual Understanding

Codes can be utilized as a part of the classroom and somewhere else to provoke talk and reflection on moral issues and to empower a common comprehension among experts, people in general, and government associations concerning the uncommon good duties of people in callings, associations, or potentially a particular practice. For instance, see the National Society of Professional Engineers Code of Ethics, which energizes a type of "supportable advancement" that addresses human issues while preserving and securing natural quality.