GAAP Generally Accepted Accounting Principles governd by

#GAAP Generally Accepted Accounting Principles governd by update#
#GAAP Generally Accepted Accounting Principles governd by professional#

This is the essence of accrual basis accounting.

The flow of cash does not have any bearing on the recognition of revenue. Revenue recognition principle: holds that companies should record revenue when earned but not when received.Most debts and securities are now reported at market values. Thus there is a trend to use fair values. This principle provides information that is reliable (removing opportunity to provide subjective and potentially biased market values), but not very relevant. Historical cost principle: requires companies to account and report assets and liabilities acquisition costs rather than fair market value.Time-period principle: implies that the economic activities of an enterprise can be divided into artificial time periods.The FASB accepts the nominal value of the US Dollar as the monetary unit of record unadjusted for inflation.

Monetary Unit principle: assumes a stable currency is going to be the unit of record.The business will continue to exist in the unforeseeable future. Only when liquidation is certain this assumption is not applicable. This validates the methods of asset capitalization, depreciation, and amortization. Going Concern: assumes that the business will be in operation indefinitely.Revenue and expense should be kept separate from personal expenses. Business Entity: assumes that the business is separate from its owners or other businesses.To achieve basic objectives and implement fundamental qualities, GAAP has four basic assumptions, four basic principles, and five basic constraints.

When the changes will be effective and the transition method.

GAAP and background information related to the change GAAP, including each specific amendment to the FASB Codification

#GAAP Generally Accepted Accounting Principles governd by update#

The FASB issues an Accounting Standards Update (Update or ASU) to communicate changes to the FASB Codification, including changes to non-authoritative SEC content.

Accounting textbooks, handbooks, and articles.

Technical Information Service Inquiries and Replies included in AICPA Technical Practice Aids.

#GAAP Generally Accepted Accounting Principles governd by professional#

Pronouncements of professional associations or regulatory agencies.

International Financial Reporting Standards of the International Accounting Standards Board.

American Institute of Certified Public Accountants (AICPA) Issues Papers.

Practices that are widely recognized and prevalent either generally or in the industry.

Įxamples of nonauthoritative accounting guidance and literature include the following:

In addition to the SEC's rules and interpretive releases, the SEC staff issues Staff Accounting Bulletins that represent practices followed by the staff in administering SEC disclosure requirements, and it utilizes SEC Staff Announcements and Observer comments made at Emerging Issues Task Force meetings to publicly announce its views on certain accounting issues for SEC registrants. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The FASB Accounting Standards Codification is the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. GAAP in Extensible Business Reporting Language (XBRL) beginning in 2008. The Financial Accounting Standards Board (FASB) publishes and maintains the Accounting Standards Codification (ASC), which is the single source of authoritative nongovernmental U.S. Securities and Exchange Commission (SEC) and is the default accounting standard used by companies based in the United States. GAAP, pronounced like 'gap') is the accounting standard adopted by the U.S. Generally Accepted Accounting Principles ( GAAP or U.S.