UK Accounting principles, Assumptions, Procedures, Policies. Are they important?

[Tarlan Aghamirzayev]

Hello dear friends

I have a question about theories that i mentioned on title..

I know how to prepare all type of financial statements and now i am learning to analyse it PROPERLY.
But I do not have enough idea about principles assumptions etc. The question is, are they important for future career and job tasks in the workplaces. Do i have to understand them?

Thank you very much in advance
Wish you all best of luck

 

[kirby]

Absolutely critical for policies.

 

[Tarlan Aghamirzayev]

Absolutely critical for policies.

thank you for your answer. But do you mean only "policies" important or all principles, assumptions procedures as well.?
Thanks

 

[kirby]

Accounting principles - it is a given you have to know these to be an accountant.
Assumptions, procedures and policies are unique to each company. I just picked "policies" as having the highest importance because they affect the large scale issues of a company, such as when to recognize income.
Procedures -in contrast - typically involve how the work is to be done at each desk. Assumptions, I think of as estimates used - for example - in asset depreciation lives. So usually not as "arguable" as a policy.

 

[Werner Reisacher]

Let me try to explain to you why accounting principles and strict adherence to them are the corner stones of a financial market. Assuming you are an investor and want to invest into a company. What is the basis you can measure the performance and the value of this company? Well, as a starting point, their Balance Sheet and the Profit and Loss Statement. And then, you want to compare it against the value of an alternative company you want to invest in. So. unless the Financial Statements of these companies are based on the same principles, you are going to compare apples with bananas.
So to answer your question, if you are looking for a career in Accounting in any company that is interested in operating as a trust worthy firm, operating within the legal and professional rules applicable in its country, your chances to get a job are very limited and, actually, you might even end up in legal troubles if you pretend to know those policies and fake it.