Companies may deviate from general accounting practices by using industry specific procedures when these procedures are better suited to their industry.
BT: Knowledge

Question

Quizplus · Accepted Answer

This statement is true. Companies may use industry-specific procedures when they are more relevant to their financial reporting needs. These procedures are typically developed to address the unique characteristics of certain industries and provide more accurate and informative financial information. However, such procedures should be disclosed in the financial statements to allow users to understand the basis on which they were prepared.

Companies May Deviate from General Accounting Practices by Using Industry