raamatupidamispõhimõtte

Raamatupidamispõhimõtte is the Estonian term for accounting principles. These are a set of rules, conventions, and standards that govern how financial transactions are recorded, classified, summarized, and reported. Their primary purpose is to ensure that financial statements are consistent, comparable, and reliable, providing a true and fair view of an entity's financial position and performance.

In Estonia, as in many other countries, accounting principles are largely based on International Financial Reporting Standards (IFRS) or national accounting standards that are derived from or compatible with IFRS. These principles dictate how assets, liabilities, equity, income, and expenses should be recognized and measured. Key concepts include the accrual basis of accounting, where revenues and expenses are recognized when earned or incurred, regardless of when cash is exchanged. Other fundamental principles include the going concern assumption, prudence, consistency, and materiality.

Adherence to raamatupidamispõhimõtte is crucial for businesses to meet legal and regulatory requirements, facilitate external audits, and enable informed decision-making by stakeholders such as investors, creditors, and management. The consistent application of these principles ensures transparency and trust in the financial reporting process. Changes in accounting principles are typically made only when they lead to a more faithful representation of financial information.