Impact of accounting policies on the information content of financial statements

Abstract

In the light of implementing international accounting system based on the principals adopting globally into the national accounting model it can be noticed a significant impact of accounting policy on the data reflected in the financial statements. Accounting policies are those bases, rules, principles, conventions and procedure consistently followed and adopted in the preparation and presenting financial statements. This institute is an integral and important part of the broad field of business activity, performance which the guidance for understanding the key information describing the current economic position of certain entity.