Accounting Policy and Principles

Accountancy

What do you mean by Accounting Policy and Principles? Also provide me some examples for better understanding.

Harish Chandar T

CA Inter

★ 5

05-Dec-23 10:34

391

Answers (2)

The Accounting Principle is the standard rule set by the governing body that ICAI. WHILE Accounting policy is the guideline or method used by management of an enterprise to adhere to the rule & prepare financial statements.

Soon to be CA

CA Inter

★ 4K+

05-Dec-23 11:56

Accounting policies refers to specific accounting principles and methods of applying those in the preparation of F.S In this way accounting principles are sub set of accounting policies Eg: of accounting policies using fifo or weighted average for inventory valuation Using different depreciation methods on PPEs

Shrikant

CA Inter

★ 1K+

05-Dec-23 19:20