        Introduction
Financial statements are usually prepared by an entity to communicate instruction about its financial performance, position, cash flows, and movement of equity to users and back up them make decision. A statement of be policies is specified with these statements to wait on users understand how the information is collected and make it understandable and useful. In this essay, the author depart attempt to explain the importance of sagaciousness which method of accounting policies have been employ in preparing a tick of financial statements, mainly to which applied to property plant and equipment.
        The arguing of Accounting Policies
There are various assumptions that are made to peculiar(prenominal) business enterprises. Each business can choose how it will clarify some of its activities. The policies it has followed in making such choices have to be disclosed. Some companies disclose compliance with IAS but with authoritative specified exceptions. For instance, Oerlikon-Buehrle, the Swiss defence group, complies with all standards except those on business segment information and development costs. Nokia, however, the Finnish nimble phone maker, claims full compliance with IAS in its statement of accounting policies, but does not disclose geographical segment information or many of the required disclosures about retirement profit costs.
Under the FRS-1, general purpose financial write ups shall include a clear and concise statement of all accounting policies take by an entity in the preparation of its financial reports, where such accounting policies are material to those financial reports. Providing information about these policies enables users to set whether the reports are relevant and reliable and whether they can be used to compare with past years or other entities results. A computable example could be found in Hallenstein Glasson Holdings Limiteds annual report 2003. From Hallenstein annual report 2003 we can easily find that a statement of accounting policies was including under the...
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