i. Going Concern: An entity is considered a going concern if the business entity is capable of earning a reasonable net income and there is no intention or threat from any source to curtail significantly its line of business in the near future. When financial statements are not prepared on a going concern basis, it should disclose the fact together with the basis on which they were prepared and the reason why the entity is not regarded as a going concern.

ii. Consistency of Presentation: The concept of consistency holds that when an entity selects an accounting policy, it should continue to use that policy in subsequent periods. The concept ensures that the accounting treatment of like items to be the same, from one accounting period to another, to allow for comparison.

iii. Accrual: The accrual basis of accounting means that the effects of transactions and other events are recognised as they occur and not as when cash or its equivalent is received or paid. It dictates the period in which revenue and expenses should be recognised in the financial statements.

iv. Fair Presentation: Financial statements should present information that is complete, neutral, and free from error about the financial position, financial performance, and cash flows of an entity. An entity achieves a fair presentation through compliance with applicable IFRSs with additional disclosure when necessary.

v. Substance Over Form: This requires that business transactions should be recognised in the financial statements in accordance with their economic realities to the reporting entity, rather than their legal form. If the economic reality is followed, then the financial statements will represent faithfully the financial transactions that have occurred.

vi. Prudence: This concept requires the exercise of caution when making judgement under conditions of uncertainty. The exercise of prudence means that assets and income are not overstated and liabilities and expenses are not understated.

vii. Materiality: Information is material if its omission from, or mis-statement in, the financial statements could influence the economic decisions of users. Whether an item is material or not depends on the magnitude or its nature or both in the context of specific circumstances of the business. An entity should present separately each material class of similar items; if a line item is not individually material, it is aggregated with other items in those statements or in the notes.