Accounting Policies

Accounting Policies and its Meaning

Objectives

After going through this lesson, you shall be able to understand the following concepts.

• Meaning of Accounting Policies

• Selection of Accounting Policies (as per different situations)

• Change in the Accounting Policies (if required)

Meaning of Accounting Policies

In the last lesson, we have learnt about the various accounting principles and accounting conventions that are mandatory for different business organisations to pursue. This ensures uniformity and consistency in the preparation and presentation of their respective financial statements. However, it should be noted that it is not necessary for a single organisation to comply with all the acco…