General Accepted Accounting Principles Of Accounting

General accepted accounting principles Name Institution Professor Course Date Introduction General Accepted Accounting Principles, (GAAP) can be defined as the common set of accounting rules, standards and protocols, set by policy boards, which financial institutions and other companies use to assemble their financial statements. On the other hand, International Accounting Standards Board develops and maintains the International Financial Reporting Standards, which is a single set of accounting standards set aside with the aim of being applied internationally. As an accounting standard used in a number of countries across the world, IFRS have proven to be more effective in the representation of economics of transaction more than GAAP since it is based on principles rather than rules (Bellandi, 2012). Following the way IFRS treats acquired intangible assets, it is considered more principle based and therefore the assets are only recognized if they will have future benefits economically and has a measured reliability. On the other hand, acquired intangible assets are recognized at a more reasonable value under the U.S. GAAP. According to Chiti Mattarella (2011), the last in, first-out (LIFO) method of accounting for inventory costs, is not allowed under the IFRS. On the other hand, LIFO or first-in last-out (FIFO) methods are used under the U.S. GAAP. Written inventories under the IFRS can be changed in the future if certain criteria are met whilst these cannot beShow MoreRelatedGeneral Accepted Accounting Principles ( Gaap ) : The Revenue Recognition3817 Words   |  16 Pages Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) ACCT 610 Financial Reporting and Disclosure Daisy Gaytan California State University, San Bernardino Abstract 1. General Accepted Accounting Principles (GAAP): The Revenue Recognition Principle Revenue recognition is a difficult matter in accounting. The company’s results differ depending of the method used to recognized earnings. This is a complex situation since business activities are broadRead MoreCorporate: Generally Accepted Accounting Principles and General Reserve1598 Words   |  7 PagesCorporate Accounting III Assignment 2 Question 1: What is the difference between direct and indirect NCI? Under AASB127, the group is required to prepare the consolidation statement when parent entity acquires shares in the subsidiary. There are two parties who own shares in the subsidiary if it’s not a wholly-owned subsidiary consolidation. One is the parent entity while the other is non-controlling interest. Non-controlling interest (NCI) is defined as â€Å"the portion of the profit or loss andRead MoreGeneral Accepted Accounting Principles958 Words   |  4 PagesAccounting Principles i Running head: GENERAL ACCEPTED ACCOUNTING PRINCIPLES General Accepted Accounting Principles Accounting Principles ii Abstract My paper is about the GAAP (General Acceptance of Accounting Principles) which were created by the Accounting Principles Board (APB). The board was created by American Institute of Certified Public Accountants (AICPA) in 1959. APB issued 31 Opinions from 1959 to 1973 and those Opinions created GAAP. I think GAAP is interestingRead MoreEthics774 Words   |  4 Pagesbuilding blocks for all accounting records and business transactions that occur. We cannot forget that decisions are based on the organizations fiscal objectives others are based on general accounting principles. So to better understand you must ask the question of â€Å"Is the financial management of the organization strong and how is the financial reporting records validity†? When we think of financial management we have to start with the basic framework of any accounting structure and that wouldRead MoreHcs 4051142 Words   |  5 Pagesproper reporting practices. Financial practices and ethical finance concerns are important to the success of any organization, particularly within the health care industry. The four elements of financial management, generally accepted accounting practices (GAAP), and general financial ethics standards are part of ensuring fair and accurate financial reporting from health care organizations. Examining examples of ethical standards of conduct and reporting standards helps to understand the impact ofRead MoreEssay about Generally Accepted Accounting Principles1217 Words   |  5 PagesThere are general rules and concepts that preside over the field of accounting. These general rules, known as basic accounting principles and guidelines, shape the groundwork on which more thorough, complex, and legalistic accounting rules are based. The Financial Accounting Standards Board (FASB) uses the basic accounting principles and guidelines as a foundation for their own comprehensive and complete set of accounting rules and standards. GAAP is exceptionally useful because it attemptsRead MoreBAF 301 Accounting and financial management Assignment 1 Mohammad Gholamali 20101147 Dr. Suja900 Words   |  4 Pages BAF 301 Accounting and financial management Assignment 1 Mohammad Gholamali 20101147 Dr. Suja Sarah Thomas Colleague of Electrical Electronics Engineering Introduction In this report I am going to write some of the important principle and assumption and guidance used to prepare accounting statements. In the world of business there are some general rules and principles which the universe of accounting uses them as a general guidance. There are some international framework like Financial accountingRead MoreEthical And Legal Obligations In Accounting Essay1330 Words   |  6 PagesMarshall (2004), accounting is the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgements (p. 3). Specifically, financial accounting refers to the process that results in the preparation and reporting of financial statements for an entity (Marshall, McManus, Viele, p. 5). While many entities prepare their own financial statements, firms can also contract with a public accounting firm or a CertifiedRead MoreWalmarts Accounting Principles1090 Words   |  5 PagesFour Accounting Principles Sharon Wallace American Intercontinental University Accounting Principles 2012 Four Accounting Principles ABSTRACT Accounting principles used by Wal-Mart and the core function of its departments. Wal-Mart’s strength and weaknesses will be listed. Wal-Mart’s last two years of accounting statements are also present. FOUR ACCOUNTING PRINCIPLES Read MoreGovernmental Non for Profit Accounting Chapter 2 Quiz Essay755 Words   |  4 PagesChapter 02 - Principles of Accounting and Financial Reporting for State and Local 11. The accounting system used by a state or local government must make it possible A. To present fairly the financial position and results of financial operations of the government as a whole, as well as fund financial activity in conformity with GAAP, and to demonstrate compliance with finance-related legal and contractual provisions. 12. Which of the following is not a characteristic of a fund as defined by GASB