Preparation of policies
Every enterprise should develop and put in writing the accounting policy, including accounting rules, that are most appropriate to the business’s circumstances
The accounting policy should include the following:
- Inventory of assets and liabilities policy
- Valuation of assets and liabilities policy
- Reglementation of the system of cost accounting
- The scrapping policy
- The cash management policy
- Chart of accounts
- Document and receipt rules
An accounting policy must be formed and written down on the base of the principles and valuation procedures laid down in the Hungarian Act of accountancy. This aims to determine the means and methods of implementing the Act, and should be appropriate to the enterprise’s characteristics and specific features. The accounting policy is the principal set of accounting rules for the enterprise concerned, since the rules it lays down are compulsory for the enterprise. Deviation from the accounting policy is allowed only by modifying this very document, respecting the rules and prescriptions of the Act of accountancy.
In consequence, an accounting policy is nothing else than a series of well-considered decisions. These decisions must be taken by the management. The person authorised to represent the enterprise is responsible for the preparation and amendment of the accounting policy.
Requirements for accounting policies are:
- Customisation
- Completeness
- Clarity
- Usefulness
- Contemporaneity
- Consistency
Newly founded companies have to finish their accounting policy (including reglementations) within 90 days from the date of formation.
Our office will prepare the above policies for an additional fee.
