Page 72 - IC26 LIFE INSURANCE FINANCE

Major considerations governing the selection of accounting policies:

1] Prudence

2] Substance over form (Logic over Law)

3] Materiality

The following are examples of the areas in which different accounting policies may be adopted by

different enterprises:

 Methods of depreciation

 Methods of translation of foreign currency

 Valuation of inventories

 Valuation of investments

 Treatment of retirement benefits

 Treatment of contingent liabilities etc.

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