Accounting policies refer to a set of rules or guidelines that an organization adopts to govern its accounting methods and practices. These policies ensure consistency, comparability, and transparency in financial reporting. For example, a company may use a straight-line depreciation method for its assets, which would be stated as part of its accounting policies. Accounting policies must align with the applicable accounting standards, such as GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards). Additionally, different companies might select different accounting policies based on their operational needs and regulatory requirements.