Accounting Conventions and Policies

Summary

Conventions are accepted practices (historical cost, matching, etc.). Policies are specific choices made by an entity in applying standards.

Key Points

• Conventions: historical cost, matching, realisation, etc.
• Policies: entity-specific choices for recognition, measurement, and presentation.
• Must be disclosed and applied consistently.

Reference

See: [[ACCA Book-keeping/IACEW PDF.pdf]]

• Chapter 5: The Conceptual Framework, accounting concepts and conventions (pages 97–122)
• Section: "Accounting conventions and policies"