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Samsung Electronics: Business Entity Concept

1070 Words5 Pages

About Company
Samsung is one of the world’s largest semiconductor manufacturer and most profitable consumer Products Company. Samsung is strengthening its core business, renewing its focus on discontinuous innovation, and implementing a diversified productivity program. Samsung aspires to further secure its position as a global electronics leader through creative business strategies that inspire future innovation and create opportunity for people around the world. The overarching vision that guides Samsung Electronics’ Vision framework is “Inspire the World, Create the Future.” This vision expresses the company’s commitment to creating a new future that positively impacts the entire global community through innovations in technology, products, …show more content…

Because in the public listed company there are multiple investors so it is hard to keep everyone satisfied therefore management is appointed to operate the business independently to keep everyone satisfied.
Monetary Concept
It states that in a business relation you are accountable for every single penny whether it is material or immaterial.
Samsung has net earnings of $28.88 billion and to arrive to that amount they deducted and incorporate various expenses and Income. If Samsung fails to account for any expense or income then it results in violent of monetary concept.
Monetary concept needs to be followed in the preparation of financial information to keep the shareholder informed about their every single penny which business earned or consumed during the given financial year which is of importance to shareholders to analyze the financial condition of business.

Historical (Cost) Concept
It states to record assets on its cost defined by IAS-16 and record it on the same cost unless no physical change have been occurred, that is increase or decrease by means of enhancement (physical efficiency) or …show more content…

Going Concern Concept
It states that management assumes and prepares financial statement on the basis that the company will continue to successfully operate in foreseeable future. The foreseeable future includes 12 months from the current reporting period.
Samsung’s financial statements are prepared in accordance with the assumption that the company is going to successfully operate for the next year. If Samsung wasn’t having a going concern so it would prepare their financial statement on breakup basis which is not the current scenario.
Going Concern is one of fundamentals to prepare financial statement so company has to keep that assumption valid to successfully operate the business and to keep shareholder’s confidence alive.
Dual Aspect Concept
It states that every transaction have two concepts Dr & Cr. Increase in an assets results in the reduction of cash whereas increase in liability result in the increase in

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