Accounting Principles & Qualitative Characteristics

[Muso Wick]

So I've been looking online and there is few ways of remembering the Accounting Principles as well as the Qualitative Characteristics, and my teacher gave such a great example! I also put down the definitions, add your own too!

Accounting Principles:
 We can remember the Accounting Principles by using CHER and MCG, as in CHER the singer and MCG Melbourne Cricket Ground (So Australian I know!)

Consistency: Accounting methods should be applied in a consistent manner to ensure that reports are comparable between periods.
Historical Cost:Transactions should be recorded at their original cost (purchase price), as this value is verifiable by reference to the source documents.
Entity: The business is assumed to be separate from the owner and other businesses, and its records should be kept on this basis.
Reporting Period: The life of a business must be divided into periods to allow reports to be prepared, and the accounting records should reflect the reporting period in which a transaction occurred. (Usually reports must be paid at the end of every financial year.)

Monetary Unit: All items must be recorded and reported in the currency of the location.
Conservatism: Losses should be recorded when probable, but gains only when certain so that liabilities and expenses are not understated and assets and revenues are not overstated.
Going Concern: The life of the business is assumed to be continuous, and its records are kept on that basis.

Qualitative Characteristics:
We can use CURR to remember the Qualitative Characteristics, did you know Curr can be defined as making a low purring sound like a cat?!

Comparability: Reports should be comparable (So basically have the same setup) over time and between companies, through the use of consistent accounting procedures.
Understandability: Reports should be prepared in a manner that makes it easy for users to comprehend their meaning.
Reliability: Reports should contain information that is free from bias, and this can be relied upon for it's accuracy.
Relevance: Reports should include all information that is useful for decision-making and exclude information that is not.

[Aqualim]

I just always remembered the accounting principles through GREMCH (an adaptation of Grinch). I found remembering one word made it easier than two. But to each their own. If I were you I'd look at the definitions in the Study Design to get an idea of what is expected.

[Muso Wick]

I have the definitions from the study design, but I've added a bit more to them, based on past ATAR Notes articles, as well as different hand outs from different teachers. One reason why I did this is because when you're facing the SAC it can be hard to remember the definitions, so I'm trying to explore different ways of remembering them. Thanks for your input!