Are your accounting policies appropriate and up to date?
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