List and discuss the importance of the two most significant accounting policies adopted by the two organizations (you should select the same two policies for both organizations).

Both organizations use the accrual basis and fair value measurement. This method allows income and expense to be recognized as it occurs, instead of when the cash is exchanged. It allows more accurate reporting of financial data and gives better insight into trends and future performance. It allows for more accurate financial reporting and better insights into future trends.

The fair value measurement is the method of determining an asset’s worth in relation to current market prices. Accounting policies of this type are important as they ensure assets’ true value and accuracy on the balance sheet. Fair value methods are also useful for gaining insight into possible investments. They provide an objective assessment mechanism to compare risk and reward scenarios prior to committing resources.

The use of fair value and accrual accounting techniques is important to businesses because they both provide useful data that helps with decision-making, while maintaining financial stability. These tools are necessary to determine the exact financial position of a company. This could result in poorer outcomes and potentially dangerous situations.