Accounting Principles

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In the U.S., Generally Accepted Accounting Principles are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly traded and privately held companies, non-profit organizations, and governments. The term is usually confined to the United States; hence it is commonly abbreviated as US GAAP or simply GAAP. However, in the theoretical sense, Generally Accepted Accounting Principles encompass the entire industry of accounting, and not only the United States. Outside the academic context, GAAP means US GAAP. The following are basic objectives of the GAAP: provide information that is useful to present to potential investors, creditors, and other individuals in making rational investment and credit, provide information about economic resources, the claims to those resources, and the changes in them, assist in making financial decisions, assist in making long term decisions, improve the performance of the business, and maintain records. IFRS are used in many parts of the world, including the European Union, India, Hong Kong, Australia, Malaysia, Pakistan, GCC countries, Russia, South Africa, Singapore, and Turkey. As of August 2008, more than 113 countries around the world, including all of Europe, currently require or permit IFRS reporting and 85 require IFRS reporting for all domestic, listed companies according to the U.S. Securities and Exchange Commission. It is generally expected that IFRS adoption
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