1. Using the Canadian dollar in the financial statements. 2. 3. 4. An increase in an asset or a decrease in a liability due to ordinary profit-generating activities. Accounting information reflects the economic substance of the event or transaction. Quarterly financial reports are prepared. 5. Cost of goods sold is recognized each time a sale of goods is recognized. 6. The Canadian dollar is used to measure economic activity. 7. Including explanatory notes as part of the financial statements. Matching Monetary Unit Revenue Recognition Comparability Historical Cost Faithful Representation Periodicity Materiality Relevance Full Disclosure Reporting Entity Going Concern Assumption Full Disclosure 8. The affairs of the business are distinguished from those of its owners. 9. A business enterprise is assumed to have a long life. 10. Valuing assets at amounts originally paid for them. Reporting Entity Going Concern Assumption: 11. Application of the same accounting principles as in the preceding year. 12. Presentation of timely information with predictive and feedback value. Historical Cost Comparability Relevance