TS 7089

TS 7089 is a standard that brings together the fundamental principles of accounting within a single conceptual framework. It focuses on the basic ideas that shape financial recording and reporting, emphasizing that accounting information should reflect economic reality rather than only a mechanical set of entries. In general technical terms, these principles are the foundation for consistent, understandable and comparable financial statements.

What the accounting principles do

The principles named in this standard—social responsibility, entity, continuity, periodicity, monetary measurement, valuation at cost, objective evidence, consistency, full disclosure, prudence, and substance over form—describe the core logic of accounting practice. In general educational context, they support the separation between the business and its owners, the assumption that operations continue over time, the allocation of transactions to the proper period, and the need for records to be supported by evidence. They also encourage reading financial statements in a way that captures the economic substance of a transaction, not only its legal appearance.

Why the distinction matters

• Monetary measurement and cost-based valuation provide the basic basis for expressing transactions in monetary terms.
• Objective evidence and full disclosure support traceability and help users understand the records clearly.
• Consistency and periodicity improve comparability across reporting periods.
• Prudence and substance over form help assess the difference between legal form and economic reality.