Author Description

The accounting policies that companies follow in preparing their financial statements have assumed critical importance in recent years. The way that expenditures and income are treated can make an enormous difference in the way a firm's performance is judged by stockholders, the financial community, regulatory agencies, and other interested parties. One set of policies can make a company's performance seem better or worse than another set of policies.This book offers a clear and practical guide to understanding the crucial significance of accounting policy. It discusses the basic objectives of financial reporting, what is reported and when it is reported, how profits are measured, the way policies are regulated, and how accounting practices differ in the international arena. Explaining the process by which accounting standards are set and how they have evolved, it also recommends directions that should be taken in setting those standards during the years ahead.