Accounting policy audit

What we check

• formalities: order of the head, effective date, application to all divisions (para. 51 of NAS No. 1);
• grounds for changes during the year — allowed only on reorganisation, change of owners, change in legislation, new accounting methods or improved reliability (para. 52);
• methods by area: fixed assets — measurement model and depreciation methods under NAS No. 5, inventories, revenue, provisions, stock counts;
• tax section: the cost threshold for fixed assets (Article 306 of the Tax Code), separate VAT accounting (Article 268), depreciation methods;
• document flow and responsibilities.

Testing practice

On a sample of transactions we check whether what is written is actually applied: is it the same depreciation method in the system, are inventories written off in that way, are provisions recognised. A mismatch between the document and practice is a frequent finding, and in a financial statement audit it turns into adjustments.

Preparing for 2027

• separate accounting estimates from the policy — from 2027 a change in estimates is recognised prospectively and a change in policy retrospectively (NFRS No. 2);
• update the sections on presentation of financial statements for NFRS No. 1;
• check public interest entity status — in that case the policy is needed under IFRS;
• approve the new version by order before the end of 2026.

Deliverables

• a report with comments by section and references to the rules;
• recommended wording;
• a list of mismatches with actual practice and their effect on the financial statements.