What are accounting conventions

Accounting practices are generally adopted or accepted accounting procedures and methods, although not under the guidance of government regulations, but with the development of accounting theory and research, some of them form an important component of accounting theory and accounting standards. Therefore, from a narrow point of view accounting practice is not expressly provided by law customary practices; from a broader point of view accounting practices are all accountants and other relevant organizations *** with the recognition of the practice of the collective term.

1. from the manifestation of unwritten accounting practices and written accounting practices

(1) unwritten accounting practices accounting in some of the ideas that are generally recognized. Despite the emergence of different trends in the field of accounting at different times and in different countries, some traditions are clearly present, such as the principle of prudence, the principle of soundness and so on. Accounting provides a very important medium and means of economic interaction, so accounting conventions are some of the standards and norms that are observed by people in conducting accounting activities, such as double-entry bookkeeping, account structure, and so on.

(2) Written accounting conventions mainly refer to the relevant accounting laws formulated by the legislature and accounting standards formulated by the Accounting Standards Board. Due to the authority and representativeness of the enacting authority, the objectivity, scientificity and professionalism embodied in the laws and standards are indisputable.

Before the 1930s, accounting practices were mainly manifested in unwritten accounting conventions without systematic legal and professional norms. After World War II with the progress of society and people's concept of the rule of law continue to improve, many unwritten accounting practices gradually evolved into the form of accounting laws, guidelines and so on. This is a process of development of accounting practices and the formation of accounting as a rule of business language.

2. From the scope of use is divided into national accounting practices and international accounting practices

(1) national accounting practices national accounting practices refers to a country within the scope of the generally recognized and accepted accounting methods and procedures. Due to the influence of a certain level of economic development and national conditions, its prevalence is not widely recognized by the international community. For example, China has adopted accounting standards and accounting system coexisting accounting norms is the objective product of economic transition, in line with the needs of China's national conditions at this stage.

(2) international accounting practices international accounting practices refers to the majority of countries and regions in the world in the process of economic interaction and exchange *** with the recognition and voluntary compliance with the accounting standards and rules. Such as inventory valuation, translation of foreign currency transactions, the method of consolidated financial statements.

Because of the economic and political background of different countries have different impacts on accounting practices and accounting traditions have their own characteristics, so there are many differences between the accounting practices of different countries. In the face of the macro background of economic globalization and the internationalization of capital markets, as well as the increasing scale of cross-border investment and financing, the international convergence of accounting practices is particularly necessary and urgent.