Accounting Policies and their Importance
There are many types of accounting policies being used by businesses. These policies help the business owners as well as the clients. Releasing financial statements in accordance with certain accounting policies is highly recommended, important, and very useful because these policies are the framework of accounting – they reflect the major accounting principles. Here, we tell you about accounting policies and their importance. But before we head over to that, let’s talk about what accounting policies actually are. A brief description Accounting policies are the principles used by a company to release its financial statements, especially the more detailed or complicated ones. Needless to say, different companies might have different accounting policies (but they all adhere to the Accounting Standards ). According to the International Accounting Standards 8 (IAS 8), the accounting principles of a company are: “The specific principles, bases, conventions, rules and