Accounting policies are a set of principles, bases, concepts, rules, policies, and procedures adopted by an entity to account for its activities and to present information in its financial statements. Each entity determines its accounting policies by considering the accounting and other policies that are relevant to the entity's operations.

The accounting policy system is basically determined by the content of the applicable accounting standards. i.e. the accounting policy is linked to the nationwide accounting methodology followed, but specified in the individual business entity.

An entity's accounting policy is an internal normative document, which may be presented as an order, regulation, ordinance, or the like and is approved by the head of the entity (Article 11 of the Accounting Act). The accounting policy adopted does not change during the reporting period. Where changes are required, they shall be disclosed in the notes to the financial statements. Changes may result from objective changes in the entity's structure and operations or from changes in regulations. All changes in accounting policies are subject to disclosure.