GAAP Explained
Accountants follow principles and prescribed guidelines to assist them in their work. These are called Generally Accepted Accounting Principles, or GAAP
GAAP
Generally Accepted Accounting Principles for short. You may have noticed that some of the positions you found using ALIS on the Internet in Project 1 required the applicant to have a knowledge of GAAP.
GAAP
Generally Accepted Accounting Principles for short. You may have noticed that some of the positions you found using ALIS on the Internet in Project 1 required the applicant to have a knowledge of GAAP.
Why is GAAP Important?
Being familiar with rules and guidelines help you to achieve success when working on a team, or activity. Applying rules to the jobs accountants are responsible for ensures success, no matter who is completing the work. These rules help you know what you are able to do, how you are doing, and who is winning. GAAP ensures accountants are working together, even when they might be working for different companies. This consistency allows the financial records of a business to be compared from year to year or from company to company, since all companies must play by the same rules or guidelines.
In Canada, the Canada Business Corporation Act and the corresponding statutes define rules accountants must adhere to.
STATUTES
A statute is permanent established rules or laws of the various provinces demand the use of the term Generally Accepted Accounting Principles in the reports presented at the annual meetings of shareholders. The term is incorporated in the auditor’s statement.
AUDITOR
An auditor is a professional accountant who deals with analysis of books and records. The auditor’s wording may be similar to the following:
In our opinion, the accompanying balance sheet and income statement present fairly the financial position of Anchors Fisheries as at the December 31, 20xx, and the results of its operations for the year then ended, in conformity with Generally Accepted Accounting Principles applied on a basis consistent with that of the preceding year.
In Canada, the Canada Business Corporation Act and the corresponding statutes define rules accountants must adhere to.
STATUTES
A statute is permanent established rules or laws of the various provinces demand the use of the term Generally Accepted Accounting Principles in the reports presented at the annual meetings of shareholders. The term is incorporated in the auditor’s statement.
AUDITOR
An auditor is a professional accountant who deals with analysis of books and records. The auditor’s wording may be similar to the following:
In our opinion, the accompanying balance sheet and income statement present fairly the financial position of Anchors Fisheries as at the December 31, 20xx, and the results of its operations for the year then ended, in conformity with Generally Accepted Accounting Principles applied on a basis consistent with that of the preceding year.
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Assignment:
Access the google classroom associated with this module and complete the assignment: GAAP Principles Explained "It Could Happen To You"
READ the news article and review the '9 PRINCIPLES OF GAAP' to complete the assignment (click HERE)
READ the news article and review the '9 PRINCIPLES OF GAAP' to complete the assignment (click HERE)
Complete the assignment and upload your material to the correct folder within Google Classroom for a mark.
Email you teacher once you have uploaded your answers.
Use the following nomenclature to save your file(s):
[firstname_lastname_GAAP_20xx]
[firstname_lastname_GAAP_Solutions_20xx]
Email you teacher once you have uploaded your answers.
Use the following nomenclature to save your file(s):
[firstname_lastname_GAAP_20xx]
[firstname_lastname_GAAP_Solutions_20xx]
