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Accounting theory provides the conceptual framework and principles that guide the development of accounting policies. Policy making involves the process of creating specific rules and procedures based on accounting theory to address practical issues. The relationship between accounting theory and policy making is crucial as policies should be consistent with the underlying theories to ensure accurate and reliable financial reporting. Effective policy making requires a deep understanding of accounting theory to make informed decisions that align with the objectives of financial reporting.
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What problems arise in setting accounting standards?
explain accounting policy involves politics?
What is an example of an inventory accounting policy that should be disclosed in a summary of significant accounting policies is what?
Method used for inventory pricing.
What type of accounting disclosure is required if consistency concept is not applied?
In accounting the consistency concept means that when a method of accounting is adopted it must be used consistently in the future. If the policy for accounting is changed in any way the nature of the change, the effects the change has on items in the financial statement and the reason for making the change must be fully disclosed by the business. If the consistency concept is not applied then disclosure of changes are made at the discretion of the business.
What is the distinction between accounting policies and accounting basis?
A layman's answer. Policies provides guidance on how something is handled, judged, rated, ranked, executed, etc. Policy provides all concerned with direction on how to proceed. Example: my policy is to answer all questions in a layman's term. Basis amounts to "what is", or "to be", developed in order to comply with policy. For instance; the basis for our nation's policy on ransom is that to allow payment for acts involving hijacking/terrorism has been shown to encourage further activity of this nature. Our policy is to not pay ransom since it might contribute to further hijacking/terrorism acts. In accounting, such an example would be written as such: accounting policy allows for us of a two-year verses five-year depreciation schedule on the purchase of capital equipment. The accounting basis for this policy is that it would 1) decrease tax burden in the short term 2) retaining more company funds for use in capital improvements while 3) encouraging expenditure to expand the economy 4) providing job growth to 5) stimulate the economy.
What are the benefits of an accounting policy manual?
Accounting policy manual makes sure that all business transactions are recorded in same way and all related transactions are provided in same code of account and accuracy of transactions is also assured.
How does the relationship between the three branches of government influence policy making?
checks and balances
What is the term used to describe the policy making relationship between the legislature and interest groups?
the iron triangle
What is the term used to describe the policy-making relationship between the legislature and interest groups?
the iron triangle
What is the relationship between public opinion and policy-making?
Public opinion is views represented by the general public and policy making is adopted by the government. SO - public opinion can impact policy making in a positive or negative way, whether it is in your favor or not in your favor.
What is the relationship between policy formulation and policy implementation?
$$$ = implementation
What is the difference between policy making and decision making?
diffrent btw decition making and policy making
Explain in details the relationship between economics facts theory and policy?
explain in details the relationships between economics facts, theory and policy.
What is the relationship between the MPs and the MPC, and how does it impact decision-making processes within the government?
The relationship between Members of Parliament (MPs) and the Monetary Policy Committee (MPC) is that MPs hold the government accountable for economic policies, while the MPC is responsible for setting monetary policy. This impacts decision-making processes within the government by ensuring that economic policies are scrutinized and implemented effectively to achieve economic stability and growth.
What problems arise in setting accounting standards?
explain accounting policy involves politics?
What happens if you are named a benificiary in an insurance policy but the will says different?
The will has no relationship to the insurance policy. The Policy is a contract between the insurance company and the insured and does not become a part of the estate.
What is the relationship between a policy and a decision?
A policy is more general. It is a guide line that you go by all the time. A decision would apply to a specific case.
Differentiate between marketing policy and marketing strategy?
The main difference between marketing policy and marketing strategy is that a marketing policy is a set of rules for decision making, while a marketing strategy is a plan to achieve organizational goals
