Tilinpäätöksenkäytäntö

Tilinpäätöksenkäytäntö refers to the accounting policies and principles that a company follows when preparing its financial statements. These policies are crucial for ensuring that the financial information presented is reliable, relevant, and comparable over time and across different entities.

Companies must adopt a set of accounting policies that are consistent with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), depending on the jurisdiction and the company's reporting requirements. These policies dictate how various financial transactions and events are recognized, measured, and presented in the financial statements.

Key areas covered by accounting policies include revenue recognition, inventory valuation methods (such as FIFO or weighted-average cost), depreciation methods for fixed assets, accounting for leases, and provisions for potential liabilities. The choice of specific policies can significantly impact a company's reported financial performance and position.

Disclosure of the accounting policies used is a mandatory part of the financial statements. This transparency allows users of the financial statements, such as investors, creditors, and regulatory bodies, to understand the basis on which the figures have been prepared and to assess their implications. Changes in accounting policies are permitted only if they are required by a new accounting standard or if the change is expected to result in a more reliable or relevant presentation of the financial statements. When a change occurs, its impact must be disclosed, and often, prior period financial statements are restated to ensure comparability.