Accounting Policies and Its Components

Abstract

At present, research by scientists has not led to an unambiguous interpretation of the concept of "accounting policy" and its components. As a result, in the preparation of accounting policies and the disclosure of its provisions in the financial statements, there may be discrepancies, unnecessary costs associated with conducting this process, as well as overflow of reporting forms with unnecessary information. The purpose of the article is to disclose the content of the concept of "accounting policy" in order to clarify its components. The definitions of the concept of "accounting policy" are analyzed in the regulatory documents of Ukraine, the Russian Federation, IFRS, and US GAAP. The essence of the components included in the various definitions of the concept of "accounting policy" was described, in particular: the principles of accounting; methods of applying accounting principles; accounting methods; accounting procedures; basics of accounting; arrangements; evaluation methods; accounting practices; set of accounting methods; basis of measurement. Arguments were presented about the inexpediency of including in the definition of "accounting policy" organizational components, as well as past and future events. The urgency of continuing the development of the conceptual apparatus, both in national and international accounting standards in terms of accounting policies, was proved. The need to exclude from the definition of "accounting policies" of organizational issues was explained. At the same time, it is advisable to supplement international and national accounting standards containing the definition of the concept of "accounting policy" with examples of its components. It was determined that the accounting policy is a set of specific alternatives adopted at the enterprise for evaluating business transactions and reporting items at the balance sheet date in accordance with accepted accounting and financial reporting standards.