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The Financial Accounting Standards Boards (FASB), the American Institute of Certified Public Accountants and the Securities and Exchange Commission (SEC) provide guidance about acceptable accounting practices. Some of the reasons we use GAAP are that any business that expects anyone from outside their company to look at their financial data needs to use GAAP. Compliance with GAAP helps maintain creditability with creditors and stockholders because it reassures outsiders that a company's financial reports accurately portray their financial position. Additionally anyone who reads your financial statements will automatically assume they are prepared and comply with GAAP...
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Common topics in this essay:
- Generally Accepted Accounting Principles
- Advantages and disadvantages of historical cost accounting, alternatives to historical cost accounting
- General Accepted Accounting Principles
- Generally Accepted Auditing Standards
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