accounting convention

Dictionary of Accounting Terms for: accounting convention
accounting convention

methods or procedures employed generally by accounting practitioners. They are based on custom and are subject to change as new developments arise. A new accounting or tax requirement, such as an SEC accounting series releases (ASRS) may make a convention inappropriate. The accountant in performing the reporting function should follow existing accounting conventions that apply to the given situation.

Copyright (c) by Barron's Educational Series. Reprinted by arrangement with the publisher of this site.