underlying assumptions behind the preparation of FS

Relevance Reliability Matching Concept Timeliness Neutrality Faithful Representation Prudence Completeness Single Economic Entity Concept Money Measurement Concept Comparability/Consistency Understandability Materiality Going Concern Accruals Business Entity Substance over Form Realization Concept Duality Concept Here's a list off the net. Fundamental accounting CONCEPTS may be what you're looking for? Prudence, Consistency, Going concern, Materiality, Comparability? Does either list help?

well, I don't know exactly what it is, but none of your lists fit to the given answers. I'll just copy questions from the exam to clear up: 1. Which one of the following is not an underlying assumption behind the preparation of financial statements? - off-setting - reliability (correct answer) - consistency - materiality 2. Which one of the following is not an underlying assumption behind the preparation of financial statements? - materiality - accruals - understandability (correct answer) - consistency 3. Which one of the following is not an underlying assumption behind the preparation of financial statements? - comparability (correct answer) - off-setting - materiality - going concern actually, I thought it's you who composes the F7 mock exam questions on this website

Yes, it is me, but when you posted your question, I rushed off to the internet to see what came up from that. I'll need to check the source of that internet extract. According to the course notes, the 5 underlying assumptions are "Accruals, Going Concern, Consistency, Materiality and Off-setting" I was too distracted at the time of my initial response to open the course notes on the net and don't have them hard-copy ready to hand, so took an inexcusable short cut Work on the list of five that I've just given you. Why did I not know them off the top of my head? Because it's many years since I taught those 5! It's a chapter that the students get to work through for themselves I'll try not to be so carefree in future

Incidentally, when I learned them many years ago, prudence was THE fundamental accounting concept but was removed and replaced by off-setting If two concepts were in conflict, prudence prevailed!

>>It’s a chapter that the students get to work through for themselves but I did! I've just seen my notes there on the lecture notes. but it's just a bit difficult topic for my understanding - the framework - so I decided to listen to your lecture on it on the P2 a couples of days ago, just to absorb the information through my hearing as well. and there were only two assumptions explained there, as I said, going concern and accruals. I don't know how critical it is for the P2 candidates, probably I shouldn't have listened to the lecture beforehand, but observing any topic from different points helps me a lot. besides, I like to listen to you explanation and reasoning while studying any substance :) I think, after I've heard the lecture my memory was overwritten with new information and I completely forgot what I've studied previously all by myself. but as a reward, now all nine... oh my goodness, ten qualitative characteristics are firmly planted into my mind with your helpful technique :)

:-)