AT as science:theory systematicallu related concept, definitions and hypotheses that are

proposed to explain and predict accounting phenomena. The implication is what will
explain in accounting theory must be free value, coherent, universal, and could be
verified empirically. Technology: AT may be defined as logical reasoning in the form of a
set of broad principles that (1)provide general framework of reference by which
accounting practices can be evaluated and(2)guide the development of new practices
and pricedure. The implication is AT can be seen as explanation of reasoning to
determine what&how is the best way to treat an accounting object.AP:all
concept,rules,procedures,methods,techniques that are available theoretically and
practically,AS:concept, principles,methods,technique which are intentionally seleceted
as the basis of conceptual framework from the standard setter bod in order to achieve
reporting objective in certain region,GAAP: conventional, that is theoru become
generally accepted rather than by formal derivation from a set of postulates of basic
concept.therefore, GAAP encompass the convention,rules, and procedures necessary to
define accounting practice at particular time.Because not all rules of accounting
recognition has put in the form of accounting standard, it is worried that the fairness
onlu in technical not substantive, to achieve high quality of information, the
measurement of fairness must be a conceptual framework that comprehensive eought
to cover technical and conceptual aspects.The going concern simpky states that unlesss
there is evidence to the contract, it is assumed that the firm will continue indefinitely.as
a result, under ordinary circumstances, reporting liquidation values for asset and
equities is in violation of the postulate.Validity:lots of company running business for
quite long, company is not established for sporadic or shor term in business along with
the fact that continuity is a common expectation.Implication:periodic income is an
important evaluation in earning power,a statement of income should be presented in
comparative,since a balance sheet show the balance of service potential of assets item,
their valuation should be based on historical cost.concervatism:attitude against
ucertainty by taking action based on the unfavorable outcome.implication is probable
loss will recognized imediately while probable gain is not anticipated.Rules-based
accounting is basically a list of detailed rules that must be followed when preparing
financial statements. Principles-based accounting such as (GAAP) is used as a
conceptual basis for accountants. A simple set of key objectives are set out to ensure
good reporting. Common examples are provided as guidance and explain the
objectives.the fundamental advantage of principles-based accounting is that its broad
guidelines can be practical for a variety of circumstances. Precise requirements can
sometimes compel managers to manipulate the statements to fit what is compulsory.
The problem with principles-based guidelines is that lack of guidelines can produce
unreliable and inconsistent information that makes it difficult to compare one
organization to another. Many accountants favor the prospect of using rules-based
standards,because in the absence of rules they could be brought to court if their
judgments of the financial statements were incorrect. When there are strict rules that