06/08/2020

06/08/2020

Are your accounting policies appropriate and up to date?

accounting software Accounting policies are the specific principles, bases, conventions, rules, and practices applied by a company in preparing and presenting its financial statements. The company’s management shall use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable. A company needs to be sure that the accounting policies reflect current accounting requirements. A company may be concerned that poorly drafted policies may result in errors and inconsistent application of accounting requirements. When choosing application of appropriate accounting policies, the following should be considered:
  • Substance over form
  • Objectivity
  • Fairness
  • Materiality
  • Prudence
A company shall select and apply its accounting policies consistently for similar transactions. A company's choice in accounting policies will indicate whether management is aggressive or conservative in reporting its earnings. A company’s accounting policies should be reviewed regularly to ensure that they remain the most appropriate to its particular circumstances. A company should implement a new accounting policy if it is judged more appropriate to the company's particular circumstances than the present accounting policy.

WHAT QUESTIONS DO YOU HAVE?

If you need assistance with reviewing your current accounting policies or applying a change to an accounting policy contact us here in Cooney Carey on 01 677 9000 or send us an email to info@cooneycarey.ie.   We would be delighted to assist you. To keep in touch, connect with us on LinkedIn.