A principal should always be looking for ways to improve the student experience at school. Developing effective programs that cover a variety of areas is one way to ensure this. It is acceptable to look at other schools in the area and to implement those programs within the principal's school that have proved to be effective elsewhere. For Heritage Open Days 2020, Principle 5 is pleased to present this 4-minute introductory video: “Co-operatives, Past, Present and Future” We also welcome visits to the Resource Centre for a short guided tour, during Heritage Open Days 11th-20th September 2020, by arrangement via email. The Principle 5 Co-operative Resource Centre is open to one visitor at a time. If you want to go from 'Stuck' to UNSTOPPABLE, these 5 principles are a must-know.
Whether you’re in the business of selling widgets, providing cleaning services, tending to animals, or manufacturing industrial equipment, your business operates under the same basic principles of modern accounting. Smooze 1 7 18. These principles are generally accepted practices of accounting, which became commonplace in the 1800’s, though the original concepts are as old as ancient Mesopotamia.
The world of accounting took great strides with the treatise of bookkeeping, published by Luca Pacioli in 1494 within a book entitled, Summa de Arithmetica, Geometria, Proportioni et Proportionalita. These five basic principles form the foundation of modern accounting practices.
1. The Revenue Principle
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This principle defines a point in time when bookkeepers may record a transaction as revenue on the books. The revenue principle states that revenue for the business is earned and recorded at the point of sale. This means that revenue occurs at the time at which the buyer takes legal possession of the item sold or the service is performed, not at the moment at which cash for the transaction is accepted by the seller. This concept is sometimes called the “revenue recognition principle.”
2. The Expense Principle
This principle defines a point in time at which the bookkeeper may log a transaction as an expense in the books. The expense principle, or expense recognition principle, states that an expense occurs at the time at which the business accepts goods or services from another entity. Essentially, it means that expenses occur when the goods are received or the service is performed, regardless of when the business is billed or pays for the transaction.
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3. The Matching Principle
The matching principle states that you should match each item of revenue with an item of expense. For example, if you are selling tacos, you could count the expense of the shells, meat, and toppings at the time at which a customer buys the taco. In other words, you match the expense of the taco ingredients with the revenue earned from the sale of the taco. When a business applies the revenue, expense, and matching principles in practice, they are operating under the accrual accounting method.
4. The Cost Principle
The cost principle states that you should use the historical cost of an item in the books, not the resell cost. For example, if your business owns property, such as real estate or vehicles, those should be listed as the historical costs of the property, not the current fair market value of the property.
5. The Objectivity Principle
The objectivity principle states that you should use only factual, verifiable data in the books, never a subjective measurement of values. Even if the subjective data seems better than the verifiable data, the verifiable data should always be used.
In addition to these basic principles, the accounting world operates under a set of assumptions, or things that accountants can assume to always be true. UAB offers online bachelor’s and master’s degree programs, which educate accountants as well as business professionals on these principles and how to use them in real world practice. Visit our bachelor’s in accounting page for more information today.
The Principles
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ALL BUSINESS SHOULD: Ensure that products and services are safe, and seek to support children’s rights through them
Monitor not only the sales, but find out who is consuming the product and make efforts to prevent stores from selling harmful products to children.Young People from the Philippines, Children’s Consultations for the Children’s Rights and Business Principles Initiative
The corporate responsibility to respect includes:
- Ensuring that testing and research of products and services likely to be used or consumed by children is conducted in line with relevant national and international standards.
- Ensuring that products and services for children or to which children may be exposed are safe and do not cause mental, moral or physical harm.
- Restricting access to products and services that are not suitable for children or that may cause them harm, while ensuring that all such actions align with international standards, including non-discrimination, freedom of expression and access to information.
- Taking all reasonable steps to eliminate discrimination against any child or group of children in the provision of products and services.
- Seeking to prevent and eliminate the risk that products and services could be used to abuse, exploit or otherwise harm children in any way.
- Taking steps to maximize the accessibility and availability of products and services that are essential to children’s survival and development.
- Seeking opportunities to support children’s rights through products and services, as well as their distribution.
The corporate commitment to support includes:
GOOD PRACTICE: Focusing on children in auto safety
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An American car manufacturer has given an explicit focus to children in its research. The programme focuses solely on advancing the safety of children, youths and young adults. A multidisciplinary team of paediatricians, psychologists, statisticians, epidemiologists and engineers seeks to better understand the complexities of injury prevention and to translate science into comprehensive, effective interventions that save children’s lives. In doing so, the firm is recognizing that children are not just small adults, and that research on adult injury prevention cannot be applied to children. As a result, the programme focuses on the specific needs of children and teens. For example, children are the primary occupants of the second and third rows in vehicles, so automakers need to optimize safety restraints for them.