Generally Accepted Accounting Principles Essays

1. Explain Generally accepted accounting principles (GAAP)? Generally accepted accounting principles (GAAP) are the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or standard accounting practice. The following is a list of the ten main accounting principles and guidelines together with a highly condensed explanation of each. a. Economic Entity Assumption The economic entity principle states that the recorded activities

Elaborate GAAP Principles with suitable examples.  GAAP GAAP stands for Generally Accepted Accounting Practice. It is a common set of accounting principles, standards and procedures that companies must follow when they compile their financial statements. GAAP is a combination of authoritative standards issued by Financial Accounting Standards Board and the commonly accepted way of recording and reporting accounting information. GAAP improves the clarity of the communication of financial information

Principle is a set of rules people follow in order to have a disciplined and just society. A principle can be rules related to business such as GAAP (Generally Accepted Accounting Principles), where public traded companies are required to follow a strict set of standards to report annual financial reportings to investors. A repercussion in which we all recalled was the 1929 Great Depression when companies' financial figures were unregulated, and businesses could report fake numbers to attract investors

going throughout the last fifty years on whether accounting standards should be rules –based or principle based (Zeff, 2003). The question is whether historical cost accounting or fair value must be used is questioned and for the instant, as Zeff (2007) opinion, fair value is becoming more prominent in the standards of the International Accounting Standards Board (IASB) as well as in the standards of its U.S. counterpart, the Financial Accounting Standards Board (FASB). This shows that the universal

the employment of the Generally Accepted Accounting Principles (GAAP). However in certain instances, entities don’t conform to the GAAP and fraudulently manipulate their financial reports

that is calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles. The accrual accounting is more popular and be widely used in business world because it produces more accurate and faithful financial statements that constitute better representation of actual circumstances than its main competitors. The major weakness of accrual accounting is that there is some time issue such like the time of occurred and time of recorded would probably

Financial Accounting Standards Board Introduction The FASB is the independent institution that was established in 1973. It is a private sector not for profit-organization, based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). The FASB is widely recognized by the Securities and Exchange Commission as the designated accounting standard

internal control over financial statement. Internal control over financial statement reporting is process provided to ensure the reliability of financial reporting and preparing financial statement for reporting external purpose m according to general accepted in united state of America. ……………………………………………………. Question: 1 Yes there is an exception, as there is some exception in the report, this means that its unqualified report. There are other types of reports: -Qualified opinion, when one or more

The FASB Accounting Standards Codification (FASB Codification) is the only source of authoritative GAAP apart from SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update to inform people about changes to the FASB Codification, which includes changes to non-authoritative SEC content. In relation to International Financial Reporting Standards (IFRS), after a new IFRS Standard is issued and before it becomes effective, the International Accounting

DBA 7030: ACCOUNTING AND FINANCIAL MANAGEMENT LECTURERS: PROFS. GEORGE ACHOKI AND AMOS NJUGUNA THE ORIGIN, GROWTH, BRANCHES AND EMERGING TRENDS/CURRENT ISSUES OF ACCOUNTING AND ACCOUNTING PRINCIPLES ON PAGE 16 OF THE SLIDES Frasia Karua 634431 ACCOUNTING ASSIGNMENT 2 THE ORIGIN OF ACCOUTING 2 Introduction 2 Ancient Accounting 2 Babylonian Civilization 2000-3000 BC 2 Egypt Civilization 1000-3000 BC 3 Pre-Christian China 1122 - 256 B.C. 4 Greek Civilization 1-1000 BC 5 Ancient Rome 5

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (G.A.A.P) GAAP is an international convention of good accounting practices. It is based on the following core principles. In certain instances particular types of accountants that deviate from these principles can be held liable. The Business Entity Concept:- The business entity concept provides that the accounting for a business or organization be kept separate from the personal affairs of its owner, or from any other business or organization. This means

these Definitions are attached. B. “Assets”, “Personal”, “Joint” “Business” means all property of the Debtors, including but not limited to (I) anything required to be reported as an Asset of the Debtors for financial accounting purposesunder generally accepted accounting principles, (ii) anything considered property of the estate of the Debtors for purposes of Fl. Statutes; 726.102 (4), and (iii) anything owned by the Debtors, or in which the Debtors had any rights or interests, including but not

management and employees only for periods when they achieved targeted revenue. Soon after, Qwest 's stock price had increased to dollars higher than its original price. It was later discovered that Qwest had not been following the full disclosure principles and failed to disclose the impact of nonrecurring revenues. In its earnings releases and the management 's discussion and analysis portion of its SEC filings, Qwest improperly characterized nonrecurring revenues as service revenue, often within

Financial Accounting is a field of accounting concerned with a company’s financial transactions. It uses standardized accounting guidelines to record, summarize and present the transactions to mainly external users periodically by means of Financial Statements. Creditors and other lenders like banks and other financial institutions, Government Authorities, Prospective Investors, Customers, Competitors and Regulatory Authorities are some of the External Users who may use these Accounting information

Proposed Accounting Standards Update 2017-210 – Inventory (Topic 330) Summary of Main Points of Proposed ASU 2017-10 Accounting Standards Codification (ASC) 330 provides the provisions mandated by Generally Accepted Accounting Principles (GAAP) for the accounting and disclosure requirements for inventory. Inventory represents products held for resale and has financial significance because it is deemed a current asset on a company’s balance sheet and the reported amount affects cost of goods sold

Business Financial Accounting The business financial accounting process is separated to three different types of transactions used to record business transactions in the accounting records. This information is then accumulated into financial statements. The first transaction type is to make certain that reversing entries from the previous period have been properly reversed. The second transaction type contains the steps needed to record individual business transactions in the accounting records. The third

Andersen’s Fall Arthur Andersen – Arthur Andersen was one of the Big Five accounting firms along with PWC, EY, KPMG and Deloitte providing auditing and consulting to corporations. It was founded on 1st December, 1913 by a Norwegian Arthur Andersen and Clarence DeLany as Andersen DeLany & Co. The firm changed name to Arthur Andersen & Co. in 1918. Arthur Andersen always maintained high standards and ethics in the accounting industry, especially till the death of Mr.Andersen. In 1914, Mr.Andersen told

In present business scenarios often the organizations publicize the financial accounting statement and the financial reports for the purpose of the making the information available to all the people that are interested in the organizations financial condition. Also these reports are used by the investors, creditor, share holders etc for making many decisions, so the organizations try to manipulate these accounting reports and financial statements to show artificial profits to them. Because of these

This can be achieved by building the most respected investment manager in the world. The efforts towards achieving the mission are guided by the following principles, provided by the leadership. To achieve its mission, it has outlined following

The Accounting Standards Codification (ASC) 350, Goodwill and Other, regarding testing goodwill for impairment provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting