Ch 1 · Theoretical Framework

⭐ Important points (exam-critical)

• ⭐AS-1 disclosure of accounting policies is a 4-mark theory favourite.
• ⭐Distinguish fundamental assumptions (going concern, consistency, accrual) from conventions.
• ⭐Substance over form: record economic reality, not legal form (e.g., hire purchase).
• ⭐Money measurement concept excludes qualitative factors (employee morale, brand loyalty).