Examples
Some examples of critical accounting policies are:
- A clothing retailer accounting for inventory taking into consideration the fact that a rough balance of sizes is necessary for any particular piece of clothing on the sales floor
- Bank's accounting for future unpaid loans
- A manufacturer or a store accounting for future returned items
- Mortgage companies accounting for mortgage servicing rights
- The estimate of bad debts
- Accounting for the value of derivatives
- Selecting an appropriate rate and method of depreciation of fixed assets
Read more about this topic: Critical Accounting Policy
Famous quotes containing the word examples:
“Histories are more full of examples of the fidelity of dogs than of friends.”
—Alexander Pope (1688–1744)
“No rules exist, and examples are simply life-savers answering the appeals of rules making vain attempts to exist.”
—André Breton (1896–1966)
“There are many examples of women that have excelled in learning, and even in war, but this is no reason we should bring ‘em all up to Latin and Greek or else military discipline, instead of needle-work and housewifry.”
—Bernard Mandeville (1670–1733)