Look at companies garmin and gopro and report on their financial
The two most significant accounting policies adopted by both organizations are the use of accrual-basis and fair value measurements. The accrual-basis method is a means of recognizing income and expenses as they occur, rather than when cash changes hands. This allows for more accurate financial reporting and provides better insights into future trends and performance. Furthermore, it allows companies to make informed decisions when budgeting or forecasting future revenues or expenses as well as provide a clearer picture of overall liquidity levels at any given time.
Fair value measurements refer to the process of determining the worth of an asset in terms of current market values. This type of accounting policy is important because it helps ensure that assets are recorded accurately on their balance sheet and that their true economic value is reflected accordingly. Additionally, fair value methods can be used to gain insight into potential investments by providing an objective evaluation mechanism in order to measure risk versus reward scenarios before committing resources.
Overall both accrual-basis accounting and fair value measurement techniques play important roles in businesses operations since they help provide valuable data required maintaining financial stability while aiding decision making processes . Without these tools would difficult determine exact monetary position company which could lead poorer results eventually leading down road potentially disastrous situations so having such standards place necessary protect both organization its customers from unforeseen circumstances.