General Accepted Accounting Principles Essay
Running head: GENERAL ACCEPTED ACCOUNTING PRINCIPLES
General Accepted Accounting Principles
Accounting Principles ii
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 interesting due to how many companies think they can get away with financial dealings but get caught. I also think that GAAP is a system that really needs a good looking at and maybe an overhaul. Some people say the GAAP is dead and should be shelved …show more content…
Accounting Principles 2
It is the job of the FASB to establish the "generally accepted accounting principles," or GAAP, to which public financial reporting by U.S. corporations must conform and to keep those principles current. In conducting its activities, the Board strives to carefully weigh the views of its constituents, who include all those with an interest in financial reporting, including users, preparers, and auditors of financial reports. (www.fasb.org, Facts about FASB, 2002).
The primary purpose of generally accepted accounting principles (GAAP) is to make the information in financial reports relevant, reliable, and comparable. Information that is relevant has the ability to affect the decisions made by financial statement users. Reliable information is necessary if decision makers are to depend on it. GAAP imposes limits on the variety of accounting practice that companies can use, thereby making the financial statements more useful. (K D. Larson, 1997). Generally accepted accounting principles for local and state governments