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Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2011 Hi Experts,
What is acccounting policy and accounting principle?is there is any difference?what is the signification of accounting policy and accounting principle?
pls tel me example of accounting policy and accounting principle?

thanks in advance

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

14 January 2011 First take your thanks in advance back then I will answer.

These words are too irritating.

You may give thanks thenafter if you are satisfied with the answer.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

16 January 2011 The specific policies and procedures used by a company to prepare its financial statements. These include any methods, measurement systems and procedures for presenting disclosures. Accounting policies differ from accounting principles in that the principles are the rules and the policies are a company's way of adhering to the rules.

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

16 January 2011 Thanks Sahileshbhai for your answer.

( Don't expect "personal" thanks from the author ).

Nice explanations in short :
-------------------------------

Principles are the rules

and

the policies are company's way of adhering to the rules.

Hope the author is satisfied.

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