What Are Accounting Policies?
Accounting policies refer to the specific principles followed by the enterprise in accounting calculations and the specific accounting treatment methods adopted by the enterprise. [1]
Accounting Policies
- Accounting policies refer to the specific principles followed by the enterprise in accounting calculations and the specific accounting treatment methods adopted by the enterprise. [1]
- 1. Benefit-sharing
- The financial accounting of an enterprise should be directed to its relevant stakeholders (including the government, existing shareholders, potential shareholders,
- Specific content and disclosure of accounting policies
- specific
- Factors to consider in the selection of accounting policies
- The main factors affecting the choice of accounting policies of enterprises include the following aspects:
- 1. National regulations and economic policies
- Companies must choose accounting policies to the extent permitted by accounting regulations, while also considering issues such as commercial law,
- Common accounting policies include:
- (1) Issue
- The subject of accounting behavior is the specific executor of the choice of accounting policy.
- The accounting environment is broad, including the external environment of accounting and
- The influence of accounting policies on accounting information exists objectively, and this influence has caused the uncertainty of accounting information. As long as the company has the right to choose the accounting treatment method within the scope of macro accounting policies, this uncertainty will always exist. But it does not belong to the category of distortion of accounting information, and is not the object of our governance. Because; first, the existence of accounting policies is objective. The national accounting regulations have the characteristics of generality and relative stability, but the production and operating environment of enterprises is constantly changing, and macro accounting policies cannot specifically regulate all accounting treatments of enterprises. In accounting practice, there are differences in the size, quantity, and environment of the same accounting matter in different enterprises. Different levels and types of enterprises require different degrees of disclosure of information about the same accounting matter. Complete uniform requirements for accounting treatment.
- It is this demand for accounting practice that makes the emergence of accounting policies inevitable. Since the existence of accounting policy is objective, it will not be transferred by human will. People can neither deny it nor eliminate it; and the distortion of the accounting information that we want to govern can be improved or cured by efforts. Second, accounting policies are legal. Macro accounting policies are promulgated by the state in the form of laws. Micro accounting policies are the choices made by enterprises on accounting treatment within the scope of macro accounting policies. Although enterprises have full autonomy, they must be bound by national macro accounting policies. As long as the accounting personnel select within the range allowed by the accounting regulations, they should consider that the accounting information provided by them is true and reliable; and we must treat the distortion of accounting information in violation of the law. The third is that accounting policies are needed for business management.
- The accounting policies formulated by the enterprises are combined with the financial management environment and production and operation characteristics of the unit, such as the capital and equity structure of the unit, the liquidity of funds, the correspondence between debt repayment ability and debt burden, the characteristics of the industry, and the production and operation of the enterprise.
- Bank accounting related books