Title: Role of Accounting Policy in Fair Statement’s Representation
Abstract: Financial reporting has always been one of the most important characteristics of a company. Financial reporting serves as a source of information for managers to make critical managerial and strategic decisions. Adherents of fundamental analysis of financial markets base their recommendations on purchasing securities, inter alia, on the analysis of the financial reporting of the company of interest to an investor. The state not only charges a tax on the company but also can subsidize it or restrict its activities based on financial reporting. These and many other factors explain the critical importance of the accuracy of financial reporting. The accounting policy determines the choice of a method for reflecting business transactions allowed by law, which affects the financial reporting. That is, the company’s accounting policy, as an instrument for preparing its financial reporting, has a significant effect on the accuracy of financial reporting. The paper is devoted to the study of the accounting policy effect on the accuracy of financial reporting as the most important qualitative characteristic of such reporting information.
Publication Year: 2021
Publication Date: 2021-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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