BAF 301 Accounting and financial management Assignment 1 Mohammad Gholamali 20101147 Dr. Suja

Generally accepted accounting principles are specific rules for accounting for transactions occurring in a business enterprise.

COMPLETENESS - ALL DISCLOSURES THAT SHOULD HAVEBEEN INCLUDED IN THE FINANCIAL REPORTN HAVE BEEN INCLUDED.

These four elements that directs compliance are to follow all the rules and regulations essentially set by general accepted accounting principles. Similarly, the ethics is set by the organization for their personnel, including their policies on ethics and the standard course of action. Next, the two elements included are fraud and abuse which everyone should know when it comes to being honest and doing only what is ethically correct to all the parties directly involved. By using these general accepted accounting principles, the organization would be successful and surely compliant. Using these guidelines that comes from the accepted accounting principles, together with the organization's ethical policies and organizational procedures, they could prevent the fraud or abuse from happening ever within the organization. These guidelines that exists for organizations' benefit and so that they are prepared at all times whenever they are requested to show their documentation to outside vendors.

21. Rules adopted by the accounting profession as guides in measuring, recording, and reporting the financial condition and activities of a business:

The Morley (2012) website states that generally accepted accounting principles are standards that determine how accountants in the U.S. “Conduct and format their reports are determined by the FASB, U.S. Accounting records must be seen by a number of people outside of the organization for transparency purposes” (Morley, 2012). The Morley (2012) website states that if each company created its own accounting reporting methods, comparing financial statements would be inefficient and hiding information would be easier. According to the FASB, entities such as the U.S. Securities Exchange Commission and the American Institute of Certified Public Accountants recognize FASB's authority to set standards. This law ensures that no money is pocketed without being taxed and that all revenues are reported. As far as general financial ethical standards, “financial professionals have obligations to be competent, accountants and financial professionals must not only have secured education and practice that prepares them for their positions, but they must also continue that education by learning new information that can affect their practices” (Morley, 2012). According to “Associations For Financial Professionals” (2012), “financial professionals have an obligation to their

GAAP is an international convention of good accounting practices. It is based on the following core principles. In certain instances particular types of accountants that deviate from these principles can be held liable.

uses the Generally Accepted Accounting Principles as a regulatory requirement for managing financial resources. These are the guidelines and practices that are accepted in the field of accounting internationally in standardizing financial documents such as balance sheets, cash flow statements and income statements. The organization follows these principles in reporting its financial information. The absence of these standards would give the organization staff the privileges in divulging financial information at their individual expense and not at the company’s thus affecting its overall credibility to investors and

Generally Accepted Accounting Principles are standards in accounting that are used in America to enable the recording and reporting of financial information in a uniform way. These standards are established by the Financial Accounting Standards Board with is the body that is responsible for developing and establishing these standards in the United States. Currently, the body is mandated with the task of setting up accounting standards for non-governmental organizations. While GAAP is mainly used as the accounting standards for financial recording and reporting, the source of this principle originates from various places because there is no single reference for them.

Generally accepted accounting principles (GAAP) offer a framework for all standards, rules and procedures that are ""¦defined by the professional accounting industry" and have been adopted by "nearly all publicly traded U.S. companies" (Investing Answers). The principles contained within GAAP are regularly updated in order to "reflect the latest accounting methodologies," and companies rely on these updated principles, which are both established and administered by the American Institute of Certified Public Accountants (AICPA) and the Financial Accounting Standards Board (FASB) (Investing Answers).

Generally accepted accounting principles, better known as (GAAP) discloses statements and reports financial information dealing with businesses and organizations. They are rules made by the Financial Accounting Standards Board (FASB) in which are commonly used in the health industry to maintain the decisions of the organization. GAAP gives detailed information to investors about the budget of the organization and their debt. GAAP includes the most common principles used in the health care setting. They are; the entity concept, going-concern concept, matching principle and cash vs. accrual accounting, cost principle, objective evidence, materiality, consistency, and full disclosure

Financial statements must be prepared in accordance with Generally Accepted Accounting Principles to the interested users or stakeholders. GAAP are developed by Financial Accounting Standards Board (FASB), Federal Accounting Standards Advisory Board (FASAB), Governmental Accounting Standards Board (GASB), and American Institute of Certified Public Accountants (AICPA). These standard setting bodies make it possible for statements to be compared and stated accurately. It is important to have honest management and accounting firm to enforce these set of rules established by the governing bodies in order to

GAAP is exceptionally useful because it attempts to regulate and normalize accounting definitions, assumptions, and methods. Because of generally accepted accounting principles one is able to presuppose that there is uniformity from year to year in the methods that are used to prepare a

There are many important aspects of accounting. The generally accepted accounting principles are accounting rules set out for companies to follow to ensure all companies are on the same page business wise. Qualities of accounting are important in the decision making process of accounting. Accrual and cash bias methods are different ways to count revenue and will be discussed. The final area of review is the different types of business structures.

3. The actual information needed by the management, investors, creditors etc. may be current values of assets therefore values based upon historical cost may not be useful for their purposes.

Therefore accounting methods are very much important in measuring the profit of the company and company must prepare their finical report by using the fair value and historical cost method simultaneously. However, true financial position of the company or business can be easily calculated by using the accounting methods that are more reliable and accurate. Therefore companies must use both historical and fairly value method to know the actual financial position of the company.