Why accounting policies come first
Every set of financial statements rests on choices: when revenue is recognised, which costs are capitalised, how inventory is valued, what depreciation method applies. Under IAS 8, entities select and apply accounting policies consistently, and changes must be justified and disclosed. In practice, inconsistency between entities, people or periods causes most audit adjustments we see.
Best practices for an accounting policy manual
- Keep one manual for the whole group, with each policy linked to the relevant IFRS or US GAAP requirement
- Show worked examples and journal entries, not just principles
- Set materiality thresholds and approval levels, for example for capitalisation and provisions
- Assign an owner to each policy and review the manual at least once a year and whenever a new standard applies, such as IFRS 18
- Map policies to your ERP configuration so the system enforces them automatically
Finance best practices that consistently work
- A documented month-end close calendar with named owners and reconciliation sign-offs
- Balance sheet reconciliations completed every month, not only at year-end
- Rolling forecasts alongside the annual budget
- A small set of KPIs agreed with leadership and reported the same way every month
- Segregation of duties and approval limits configured in the ERP, not just written down
What industry voices are saying: six perspectives
- Global CFO surveys published by the large accounting firms repeatedly list talent shortages, technology investment and cost discipline among CFOs' top priorities.
- Audit partners commonly stress that clean, well-documented accounting policies and timely reconciliations are what make audits faster and cheaper.
- Standard setters, through the IASB's work on IFRS 18, are pushing for more comparable performance reporting and transparency on adjusted measures.
- Technology leaders increasingly see finance as the natural owner of ERP and AI projects, because finance owns the data definitions.
- Investors and lenders want consistent KPIs and clear reconciliations between adjusted figures and IFRS results.
- Experienced controllers point out that fast, reliable closes come from process discipline and automation, not from working longer hours.
How we help CFOs
Consultify Global supports CFOs with policy manuals, close processes, reporting packs, ERP implementations and offshore finance teams that apply your policies consistently, every month.
This article is general information, not accounting, tax or legal advice. Rates, thresholds and effective dates should be confirmed with the official sources (IFRS Foundation, tax authorities, regulators) or your adviser before acting.