Accounting Policy
Accounting Policy refers to a set of guidelines and procedures established by an organization to govern its financial reporting practices. These policies dictate how financial transactions are recorded, classified, and reported in the company's financial statements. They ensure consistency, transparency, and compliance with accounting standards and regulations. Accounting policies cover areas such as revenue recognition, expense recognition, asset valuation, depreciation methods, inventory accounting, and financial statement presentation. Adhering to these policies is essential for accurately reflecting the financial position and performance of the organization.