Accounting policies are the fundamental framework from which financial statements are based and are disclosed in detail in annual financial statements.
Reporting entities must comply with the full suite of Australian Accounting Standards (AASBs). Non-reporting entities which are required to lodge their financial statements with ASIC must comply with the recognition and measurement (but not the disclosure) requirements of AASBs. Subject to the Constitution and other external reporting requirements, the directors and/or trustees of other non-reporting entities can develop their own accounting policies and procedures used in the preparation and presentation of the financial statements.
Working your way through this framework and the Australian Accounting Standards is complicated. The AASB is issuing new standards all the time. We work with our clients to develop acceptable accounting policies and appropriate disclosure relevant to their specific requirements.