Accounting Treatment is the set of rules used to determine how financial transactions should be handled and reported in the company’s books and accounts. It involves setting standards for financial reporting, defining how different transactions should be recorded, and creating procedures and processes for recording business activities in an accurate, consistent, and timely manner. While accounting treatment is all about financial accuracy, it can also impact the ultimate success of a business due to the way it influences decisions made by key stakeholders. Because of this, it is important for businesses to have a clear and thorough understanding of the various accounting treatments available and the implications of each option.