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Accepted Accounting Principles - GAAP |
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The common set of accounting principles, standards and procedures.
GAAP is a combination of authoritative standards set by standard-setting
bodies as well as accepted ways of doing accounting.
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These
are the rules that companies are expected to follow. If a financial
statement is not prepared with GAAP principals then be very wary!
Also, keep in mind that GAAP is only a set of standards, there is
plenty of room in GAAP for unscrupulous accountants to distort figures.
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FASB
- the Financial Accounting Standards Board (FASB) sets GAAP in
the United States.
CICA.ca
- the Canadian Institute of Chartered Accountants (CICA) sets
GAAP in Canada. |
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Dictionary
