The principles for creating financial statements are outlined under Sections A & B. The value that's included for every item must align with these principles. To ensure continuity, the accounting policies and measurement bases should be consistently applied annually. The company is also expected to operate as an ongoing concern.

• The financial statements reflect the company's prudence. Only realised profits by the end of the financial year will be included, while all liabilities—regardless of when they arise—are considered.
• Value adjustments for depreciation in value are valid, no matter if the financial year results in profit or loss.
• All income and expenses associated with the financial year are accounted for, irrespective of the date of receipt or payment.

For the determination of any item's aggregate value, every individual asset or liability must be considered separately. In the event of infringement from the accounting rules, the reasons and repercussions should be detailed in a note to the financial statements.

If not complying with these principles does not impact the 'true and fair view' of the financial statement, they can be overlooked.

• Under Historical cost accounting rules, the values included are based on specific rules and the amount to be included for any fixed asset is its purchase price or production cost.
• Reduction for depreciation or diminished value is permitted. Where an asset's useful life expectancy is limited, its deprecation is calculated over this lifespan and adjustments for shrinkage in value can be applied.

Particular rules apply to items like development costs and goodwill. There are also detailed rules for determining the value of current assets and rules for specific asset items. Lastly, rules are set about how to determine an asset's purchase price or production cost.