Generally Accepted Accounting Principles

Generally Accepted Accounting Principles

Literature Review on Generally Accepted Accounting Principles (GAAP)

In the Encyclopedia of Public Administration and Public Policy, [1] Catherine L. Staples offers the following summary about the topic of Generally Accepted Accounting Principles (GAAP): Generally accepted accounting principles (GAAP) are the minimum standards or rules organizations must follow in determining what financial information should be included in the general-purpose financial statements and how the information should be presented. The primary organizations responsible for setting accounting standards are the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board (FASB), and the Federal Accounting Standards Advisory Board (FASAB). For state and local governments, GAAP is established primarily by the GASB, while the FASAB serves as the main standard-setting body for the federal government. All other entities, including nongovernmental not-for-profits, follow the guidance established by the FASB. Each organization bases the development of GAAP upon a foundation of financial accounting objectives or goals, taking into consideration the need for accountability to citizens. Examples of GAAP for state and local governments include fund accounting, modified accrual accounting, the reporting entity, and the financial reporting model.

Resources

Notes and References

  1. Entry about Generally Accepted Accounting Principles (GAAP) in the Encyclopedia of Public Administration and Public Policy (2015, Routledge, Oxford, United Kingdom)

See Also

Further Reading

  • Global Encyclopedia of Public Administration, Public Policy, and Governance (2018, Springer International Publishing, Germany)

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