Generally Accepted Accounting Principles

GASB VS. FASB The Government Accounting Standards Board (GASB) established in 1984, is an independent organization that determines and improves generally accepted accounting principles (GAAP) for U.S. state and local government entities. However, GASB is not a government entity, it is an operating component of the Financial Accounting Foundation (FAF), a private sector not-for-profit entity (GASB, "Facts About GASB "). The accounting and financial reporting standards established by GASB are…

2014 and 2013 are available on its website as well (insert link). One simply needs to search for annual reports, and the location is identified. These two organizations do not use the same reporting principles to create their financial reports. Apple uses generally accepted accounting principles (GAAP) according to its annual report while Samsung uses international financial reporting standards (IFRS). Using information provided in the respective income statements a quick comparison of…

function of public accountants and public accounting firms is to conduct external audits of balance sheets, income statements, quarterly reports, and earnings reports. Public accountants must evaluate their clients ' financial statements based on GAAS (Generally Accepted Auditing Standards) and ensure that the statements have been prepared in accordance with GAAP (Generally Accepted Accounting Principles).The use of the word “public” in the term public accounting highlights the importance of the…

Ethics play a central role in accounting and the business world in general by addressing questions about the right or wrong of the used methods (Onyebuchi, 2011). Pakaluk (XXXX) states that one of the main reasons for the financial crisis in the year 2008 was caused by unethical accounting. (Pakaluk & Cheffers, 2011, p. 28). AIG, a big insurance company, sold so called credit default swaps (CDS) which serve as an insurance for the buyer XXXXX. If the debtor is not able to pay the debt, the…

analyzing the profitability or worth of a bank, book value is commonly used to understand the net worth of all the assets and liabilities that a bank holds on its balance sheet. However, there is one main issue that comes from using its book value as an accounting measure, which is the difference between book value and market value. The market value of the asset or liability is essentially what people are willing to buy that asset or liability from you in the current market, whereas the book…

INTRODUCTION Money measurement concept is an important concept of accounting. There are so many advantages and disadvantages are existed in this concept. In the beginning of accounting history there is a problem exist in this accounting field, which is the qualitative aspects and quantifiable units are not recorded in the books of accounting of the firms. On the other hand the adherence to the money measurement concept makes it difficult to compare the monetary values of one period to…

financial performance Dechow et al (2010). Higher quality earnings provide more information about the features of a firm’s financial performance that are relevant to a specific decision made by the management of the firm (Statement of Financial Accounting Concepts…

The notes state that the consolidated financial statements are prepared on an accrual basis and in compliance with Generally Accepted Accounting Principles (GAAP). The financial statements include the accounts the company uses, as well as its subsidiaries, and have been adjusted to create an honest representation of the company. One of the adjustments made was the removal of any significant…

standards by which organization have to follow in regards to their financial statements and operations. For example, organizations have to abide by Generally Accepted Accounting Principles (GAAP) and the Governmental Accounting…

Edwards, John J. Hampton, Wood and Sangster have shown the role of accounting and finance in controlling resources of a business, where business will account for what it owns and owes. That is goods purchased and expanses prepaid or accruals. In addition to this financial decisions will be made such as: the impact on current assets in deciding the creditor limit and current liabilities when deciding on payments of debts. Also Michael Jones portrays the effect of costing in planning for…