How do I prepare a summary of significant accounting policies?
As the financial statement preparer, you need to understand what accounting policies to disclose in your financial statements (typically in note 1). The detail should include the financial statement item impacted along with a brief description.
The description should be objective and should not reference any activity in the current period (i.e. the balance is $X). The visual below provides an example of how a summary of significant accounting policies can be drafted:
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