Accounting policy refers to the set of guidelines and procedures that a company follows when preparing and presenting its financial statements. Accounting policies are established to ensure that financial transactions are recorded consistently and accurately, and that financial statements are prepared in accordance with applicable accounting standards and regulations. Accounting policies typically cover areas such as revenue recognition, inventory valuation, depreciation, and amortization, among others. These policies are important for maintaining transparency and consistency in financial reporting, and for ensuring that financial statements are comparable and useful for decision-making purposes.