How does an investor obtain the knowledge of a) accounting policies of a listed company (2marks) b) accounting practices of a listed company
nb please seprate a and b and dont copy and paste an act please
The listed companies are required to submit the reports in form 10-k the investors should go on the website of listed company and download the annual filing. after that the investor by analysing the financial statement can know the accounting policies of the listed companies. it is mentioned in the annual reports of the company. and investor can also by analysing the revenue recoginition assets recoginition investor can obtain the knowledge of accounting policies of the listed companies.
Accounting practice means method company follows in recording the transacton. investor can aslo obtain the knowledge about these by analysing form 10-k and looking into how the company uses it in the past financial statements and in present. through these investor can also make analysis of past performance.
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