Accounting policy is the process of selection of specific alternative reporting methods, measurement systems, and disclosure techniques among all that might be available for financial reporting by business enterprises.
Traditionally, accounting polic...
Accounting policy is the process of selection of specific alternative reporting methods, measurement systems, and disclosure techniques among all that might be available for financial reporting by business enterprises.
Traditionally, accounting policy has been based on generally accepted practice and inductive-deductive logic in an attempt to narrow the areas of differences. Research, particularly in the areas of capital markets and human information processing, does provide some assistance in meeting the objectives of accounting policy to improve social and economic welfare. Other social and economic consequences should also be considered in accounting policy decisions in relationship to the costs and benefits of the policies.