ACCOUNTING PRINCIPLES GOVERNING U.S. GAAP
PROF Socrates
ACCOUNTING PRINCIPLES GOVERNING
U.S. GAAP
Principles underlie and support financial accounting and reporting, albeit differently under IFRS and U.S. GAAP. They include:
• Going concern,
• Materiality,
• Historical cost,
• Conservatism, and
• Matching.
However applied, they are crucial to meeting the objective of providing decision useful information in financial statements that meet the needs of users like owners, potential investors, and creditors.
REQUIRED: Prepare an essay in good form discussing any two of the listed principles. You can address how they function, the impact on reporting and accounting practices, and the problems they might cause. Please provide examples as appropriate to support your position. Cite U.S. GAAP (ASC) from the course and outside as needed to support your views and discussion.
- 8 years ago
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