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How the legislation and accounting concepts affect an organization's accounting policies?


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Answered 2009-11-18 22:05:55

Reporting methods, measurement systems, and disclosures used by a specific company. The accountant should evaluate the appropriateness of accounting policies employed by management. A description of the company's accounting policies should be presented in a separate section preceding the footnotes to the financial statements or as the first footnote. Disclosure of accounting policies should include Accounting Principles and methods of application that involve: (1) a selection from generally accepted alternatives; (2) those peculiar to the industry or field of endeavor; and (3) unusual or different applications of Generally Accepted Accounting Principles (GAAP). Examples of disclosures are basis of Consolidation, depreciation methods, and inventory pricing. Disclosure of accounting policies assists financial readers in better interpreting a company's financial statements. Thus it results in fair presentation of the financial statements.

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How legislation and accounting concepts affect an organization accounting policies?

Describe how the legislation and accounting concepts affect an organisation's accounting policiesReporting methods, measurement systems, and disclosures used by a specific company. The accountant should evaluate the appropriateness of accounting policies employed by management. A description of the company's accounting policies should be presented in a separate section preceding the footnotes to the financial statements or as the first footnote. Disclosure of accounting policies should include Accounting Principles and methods of application that involve: (1) a selection from generally accepted alternatives; (2) those peculiar to the industry or field of endeavor; and (3) unusual or different applications of Generally Accepted Accounting Principles (GAAP). Examples of disclosures are basis of Consolidation, depreciation methods, and inventory pricing. Disclosure of accounting policies assists financial readers in better interpreting a company's financial statements. Thus it results in fair presentation of the financial statements.


What has the author Edward J McMillan written?

Edward J. McMillan has written: 'Essential Accounting, Tax, and Reporting Requirements for Not-for-Profit Organizations (ASAE Financial Management Series)' 'Not-for-profit accounting, tax, and reporting requirements' -- subject(s): Nonprofit organizations, Accounting, Taxation, Finance, Financial statements 'Model Accounting and Financial Policies & Procedures Handbook for Not-For-Profit Organizations (Asae Financial Management Series)' 'Not-for-profit budgeting and financial management' -- subject(s): Nonprofit organizations, Accounting, Finance, Corporations, Budget in business 'Model policies and procedures for not-for-profit organizations' -- subject(s): Accounting, Finance, Handbooks, manuals, Handbooks, manuals, etc, Nonprofit organizations 'Essential financial considerations for not-for-profit organizations' -- subject(s): Nonprofit organizations, Accounting, Taxation, Finance


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