YTL Hospitality REIT is a real estate investment trust launched and managed by Pintar Projek Sdn Bhd. This report provides a detailed analysis and evaluation of the accounting concepts that are shown in YTL Hospitality REIT. Besides, the definitions of all the chosen accounting concepts are shown to explain how they are applied in practice. Some research are done to figure out the usefulness and limitations of the accounting concepts chosen above. Lastly, three accounting concepts are illustrated on how they are applied in the financial statements of YTL Hospitality REIT.
Define five accounting concepts
Do not overestimate the amount of revenues recognized or underestimate the amount of expenses under the prudence/conservatism concept. You should not underestimate liabilities and…show more content… Ed.). 2012 Introduction to Financial Accounting 1. London: McGraw-Hill Higher Education. Page71 5.4)
Objectivity principle is the concept that the financial statements of an organization be based on solid evidence. This means that accounting information must be based on research and facts, not merely a preparer's opinion. The objectivity principle is aimed at making financial statements more relevant and reliable. Therefore, original source documents are required in order to provide the evidence. (http://www.businessdictionary.com/definition/objectivity-concept.html, Sangster, A. And Wood, F. (11th. Ed.). 2008.Business Accounting 1. Harlow: Prentice Hall. Page108 10.3)
Consistency is an accounting concept that every firm used, it should be remain unchanged in the future accounting period unless there is a better reason to prove that this accounting method would improve in the financial reporting. Therefore, accounting method encourage that the same accounting concepts should be use consistently.