Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 5 - Balance Sheet and Statement of Cash Flows - Review and Practice - Questions - Page 238: 30


ideally, summary of significant accounting policies is a statements that is normally indicates the basic accounting principles used by that enterprise. Notably, this note should be very useful from a comparative viewpoint since it should be easy to determine whether the company uses the same accounting policies as other companies in the same industry.

Work Step by Step

Its also important to note that they indicate the key policies being followed by the accounting department and its normally placed near the begging of the footnotes and its mandated by the accounting framework IFRS and GAAP
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.