Basic Accounting Concepts & Business Structures GAAP or the “generally accepted accounting principles” are a set of standards that are accepted and practiced within the financial community. In order to fully understand the generally accepted accounting principles (GAAP) we must first look at the sources that the principles originated from. Historically, there are four organizations that have contributed to the development of the GAAP in the United States. They are the SEC (Securities and Exchange
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View March 1, 2012 Financial Accounting Standards Board of the Financial Accounting Foundation Acknowledgements Bruce Pounder, CMA, CFM, DipIFR (ACCA), was the lead contributor for the Lessons included in the FASB Learning Guide For the Codification Research System. Special thanks to Karen Guasp of the FASB, Mary Nassef of the FAF, and numerous other FASB and FAF staff members for their editorial contributions. Copyright © 2012 by Financial Accounting Foundation, Norwalk, Connecticut
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STUDY MATERIAL Integrated Professional Competence Course PAPER : 1 ACCOUNTING VOLUME – I BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA This study material has been prepared by the faculty of the Board of Studies. The objective of the study material is to provide teaching material to the students to enable them to obtain knowledge and skills in the subject. Students should also supplement their study by reference to the recommended text books. In case students need
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assumption is appropriate. An entity is obligated to include a disclosure in the footnotes of the financial statement stating if there is substantial doubt of the company to continue as a going concern. According to the Public Company Accounting Oversight Board, AU 341 describes the requirements for the auditor’s evaluation of an entity’s going concern. This standard states that an auditor’s responsibility is to evaluate if there is substantial doubt about an entity’s capability to carry on as
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standard, “The Hierarchy of Generally Accepted Accounting Principles,” that defines the meaning of generally accepted accounting principles. This standard identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements. The standard categorizes the major sources of GAAP as follows: FASB Standards, Interpretations, and Staff Positions; APB Opinions; and AICPA Accounting Research Bulletins (Kieso,D.E., pp.12) As
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Explaining Basic Accounting Concepts and Business Structures ACC/537 Dec, 5, 2011 Explaining Basic Accounting Concepts and Business Structures The purpose of the paper is to explain basic accounting concepts and business structures. This paper covers four topics, which include the following: 1. Identify and describe the sources of generally accepted accounting principles (GAAP). 2. Describe effective accounting information using the qualities of accounting information. 3. Describe
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CA 1-4 It is not appropriate to abandon mandatory accounting rules and allow each company to voluntarily disclose the type of information it considered important. Without a coherent body of accounting theory and standards, each accountant or enterprise would have to develop its own theory structure and set of practices, and readers of financial statements would have to familiarize themselves with every company’s peculiar accounting and reporting practices. As a result, it would be almost impossible
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Basic Accounting Concepts and Business Structures David Lickem ACC/537 April 15, 2013 Basic Accounting Concepts and Business Structures The accounting profession as a whole is extremely complex and ripe with regulations and rules. It is also enormously important to any organization, big or small, and thus can be a very intimidating career choice. As with anything else though, reaching a destination requires a starting point, and in accounting, a good starting point is to understand basic
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important? The financial accounting rules are called generally accepted accounting principles (GAAP). “They are the guidelines, procedures and practices that companies are required to use in recording and reporting accounting information in its audited financial statements. GAAP defines accepted accounting practices and provides a standard by which to report financial results” (Nikolai, et.al. 2010, p. 9). It took several policy-making bodies to write all the accounting standards. These bodies
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The Marketing of Accounting Standards The article “The Marketing of Accounting Standards” by Charles T. Horngren speaks of the decentralization of the Accounting Principles Board. He describes the institutional structure of the APB, speaks of the decentralization management, and the problems facing FASB. The institutional structure of the APB is decentralized, as previously mentioned, which leads to an “informal” organizational relationship. Horngren believes the APB folded because of institutional
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