Month: October 2020

Therefore, it has to prepare the standards and update accounting standards. These policies will help to make sure that the company’s financial transactions are correct and timely prepared and available for management to review. This principle dictates that firms must disclose accounting policies meaning all information relevant to their financial statements. This allows investors and …

Accounting Standard 1: Disclosure of Accounting Policies Read More »

Since accounting principles differ around the world, investors should take caution when comparing the financial statements of companies from different countries. The issue of differing accounting principles is less of a concern in more mature markets. Still, caution should be used, as there is still leeway for number distortion under many sets of accounting principles. …

What Are Accounting Policies and How Are They Used? With Examples Read More »