Does anybody know what an accounting policy is?

Until FAS 154 came along I thought I understood what an accounting policy was.  They were the things that went into note 1 to the financial statements for situations where there was an accounting choice between two alternatives.  Rather curiously whatever choice you made ended up providing a fair presentation as long as you were consistent and disclosed it in Note 1.

Until FAS 154 came along I thought I understood what an accounting policy was.  They were the things that went into note 1 to the financial statements for situations where there was an accounting choice between two alternatives.  Rather curiously whatever choice you made ended up providing a fair presentation as long as you were consistent and disclosed it in Note 1. Continue reading “Does anybody know what an accounting policy is?”