Accounting Convention

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Dictionary Says

Definition of 'Accounting Convention'

Guidelines that arise from the practical application of accounting principles. An accounting convention is not a legally-binding practice; rather, it is a generally-accepted convention based on customs, and is designed to help accountants overcome practical problems that arise out of the preparation of financial statements. As customs change, so to will accounting conventions.
Investopedia Says

Investopedia explains 'Accounting Convention'

If an oversight organization, such as the Securities and Exchange Commission (SEC) or the Financial Accounting Standards Board (FASB) set forth a guideline that addresses the same topic as the accounting convention, the accounting convention will no longer be applicable. Basically, conventions fill in the gaps between guidelines and practical usage.
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'Accounting Convention'

  • Can You Count On Goodwill?

    http://www.investopedia.com/articles/fundamental/04/011404.asp
    ... Here is where the goodwill accounting convention makes its appearance. Goodwill
    is the amount over and above the fair market value of Lightning's net assets. ...

  • How To Evaluate Pension Risk By Analyzing Annual Costs

    http://www.investopedia.com/articles/analyst/03/081303.asp
    ... While an accounting convention may allow a company to net the costs against
    the returns, the company has no legal right to the returns. ...

  • Mark-To-Market Mayhem

    http://www.investopedia.com/articles/financial-theory/08/mark-to-market-mayhem.asp
    Did this accounting convention contribute to the
    credit crisis of 2008? Find out here. ...

  • Financial Statements: Long-Lived Assets | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements7.asp
    ... Because depreciation is an accounting convention, you sometimes see an alternative
    label: "economic depreciation." This is an adjusted depreciation that ...

  • Oil And Gas Industry Primer

    http://www.investopedia.com/articles/07/oil_gas.asp
    ... square inch of pressure. Similar to the convention for oil, the term "mmcf"
    means 1 million cubic feet of gas. One billion cubic ...

  • How To Compare Yields On Different Bonds

    http://www.investopedia.com/articles/bonds/08/bond-yield-convention-conversion.asp
    Find out how to equalize and compare fixed-income
    investments with different yield conventions.

  • If different bond markets use different day-count conventions, how ...

    http://www.investopedia.com/ask/answers/06/daycountconvention.asp
    ... particular market? A day-count convention is a system used in the bond markets
    to determine the number of days between two coupon dates. ...

  • Series 7 Study Guide - Debt Securities - Computing T-bill Discount ...

    http://www.investopedia.com/exam-guide/series-7/debt-securities/compute-treasury-discount-yield.asp
    ... Now you take 360 - the number of days in a year, by convention - and divide that
    by the days to maturity. ... Finding The Right Accounting Certification. ...

  • Series 65 Study Guide - Cash Equivalents and Fixed Income ...

    http://www.investopedia.com/exam-guide/series-65/cash-equivalents-fixed/municipal-bonds.asp
    ... To fund a new bridge; To fund a new school; To fund a new convention center; To
    fund a new sewer system. ... Read More ยป; Finding The Right Accounting Certification. ...

  • CFA Level 1 Study Guide - Derivatives - Forward Contracts on Bonds ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/forward-contracts-on-bonds.asp
    ... Finance; Retirement. Acronyms; Accounting; Bonds; Buzzwords; Currencies; Economics;
    Financial Theory; ... 9.22 Accounting For Leases. 10. Red ...

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