The development of an accounting policy

The development of an accounting policy is a statutory obligation for all entities which maintain books of account. Failure to do so may result in a fine, imprisonment of up to two years or both penalties at the same time.

An accounting policy describes the financial rules of a company. It is made in writing and adopted by the management board.

A well-developed accounting policy contains the elements specified in the Act and also takes into account the specifics of the organization's activities. The document should be updated if any of the rules described in it change.

Accounting policy includes the following information:

• the company's financial year and reporting periods;
• the methods used to evaluate assets and liabilities and to determine the financial result;
• the manner in which the accounts are kept:

• the company's chart of accounts, the rules adopted for classifying events, the rules for keeping subsidiary ledger accounts and their links to the general ledger accounts,
• the list of books of accounts,
• the description of data processing system,

• a system designed to protect the data and their records, including accounting records, books of account and other documents on the basis of which entries have been made therein.

Accounting policy - how can we help?

For our clients we offer:

• the development of an accounting policy
• the review of existing accounting policy