STABILITY AND FLEXIBILITY IN FINANCIAL REPORTING: THE COMPANY'S ACCOUNTING POLICY

Abstract

Financial statements serve as a primary source of information for decision makers. Accounting policy defines the selection and application of accounting methods. A properly selected accounting policy ensures the relevance, reliability, and comparability of financial information. The requirements of International Financial Reporting Standards (IAS 8 in particular) establish consistency in accounting policies and transparency in the process of making changes. This article examines the impact of accounting policy on financial reporting, changes in accounting policies, and their influence on corporate stability and
adaptability to the economic environment.