DISTINCTION BETWEEN ACCOUNTING CONCEPTS AND CONVENTIONS :

(i) A concept is a theoretical idea forming a set of practices while a convention is a method or procedure accepted by general agreement.

(ii) Accounting concepts are not based on accounting conventions whereas accounting conventions are based on accounting concepts.

(iii) Accounting concepts are not internally inconsistent while accounting conventions are internally inconsistent.

(iv) Personal judgment has no role in the adoption of accounting concepts. But for accounting conventions,personal judgment may play a crucial role.

(v) Accounting concepts are established by law while accounting conventions are established by common accounting practices.

(vi) There is uniform application of accounting concepts in different organizations while it may not be so in a case of accounting conventions.