Companies Can Tailor Accounting Policies to Boost Performance and Transparency
The article discusses how companies need to create accounting policies that meet legal requirements and reflect their business goals. The researchers analyzed existing literature and data to show that accounting policies allow companies to choose the best methods for managing their finances and presenting accurate financial statements. The key finding is that accounting policies should be tailored to each company's unique characteristics and strategic objectives to ensure that financial information is reliable and reflects the company's true financial position and performance.