General Accepted Principles

The AICPA published the generally accepted auditing standards (GAAS). GAAS are those guidelines which auditors must follow while conducting an audit of a company's financial statements. It must also be stated in the audit report that the audit was conducted following GAAS.

> The cost principle requires that companies record plant assets at cost. Cost consists of all expenditures necessary to acquire an asset and make it

GAAP is implemented through measurement principles and disclosure principles. Measurement principles recognize and determine the timing and basis of items that enter the accounting cycle and impact the financial statements, such as the period in which transactions will be recorded. Disclosure principles determine what specific numbers and other information are essential to be presented in financial statements. Basically, GAAP is concerned with:

Within today’s health care finance plans financial management is one of the most important aspects. There are numerous financial decisions that are handled from day to day in reference to accounting records and the business transactions that occur within the organization. The organizations fiscal objectives tackle these decisions. A concern that may arise is the integrity of the health care organization’s financial management department and the accuracy of their records.

When talking about accounting, the first thing we should know is the history of its development. Traditionally, the development is from inductive to deductive. Inductive theory assume what is done by the majority is the most appropriate practice. However, It did not seek to evaluate the logic or merit of

An impersonal principle that can be applied personally may seem to be a contradiction, but it is not. The practical application of universal principles is always personal. A principle describes the impersonal operation of Life, so we think of principles as impersonal; but it is a mistake to think that they are applied impersonally. This can lead to the idea that everyone must practice a principle in the same way. In a religious setting this notion becomes the tyranny of tradition, leading to uniformity and conformity among those who would live by God's Law. In society, conformity leads to intellectual stagnation, a lack of imagination, and no innovations. The tyranny of conformity and a foolish consistency is not demanded by the principle, but by those who do not understand that impersonal, universal principles must be applied personally and individually.

GAAP (Generally Accepted Accounting Principles) determine the content and format of financial statements. SEC (Securities and Exchange Commission) requires publicly traded companies to issue annual audit. Concerns are about adequacy of disclosure; and behavioral implications are secondary.

Matching or accrual concept requires the income and expenses of a business company to be recorded in the period of when they have been earned or spent. Accountants have to make sure that prepayments of expenses are recorded separately from accrued expenses, when financial statements have been prepared.

The accrual basis of accounting conforms to the GAAP financial statements preparation provisions for external users. The US GAAP website describes financial guidelines, provides an understanding of the financial guidelines, and describes management's general flexibility. You must understand the flexibility in the GAAP standards and relate it to the individual company and its industry. Regulators view earnings quality as high when generally accepted accounting principles are adhered to.

The case centers on actual events that occurred in the Roman Catholic Archdiocese of New Orleans from 2001 to 2009. In 2008, the archdiocese announced that it had lost more than $100 million as a result of Hurricane Katrina — because insurance failed to cover all its property losses. Those losses had no bearing on the parish a closure, the church says. Not all the faithful are convinced. Later released prospectus indicated that the Archdiocese paid over $10 million directly from its own assets to settle claims of sexual abuse, and these payments were not part of financial statement or notes. Due to unauthorized expenditure parishioners and media questioned about Good Counsel’s. Good Counsel’s parishioners were very

The matching principle in the words of Nikolai, Bazley and Jones (2009) "states that to determine the income of a company for an accounting period, the company computes the total expenses involved in obtaining the revenues of the period and relates these total expenses to (matches them against) the total revenues recorded in the period." In that regard, this principle recommends that revenues and expenses (associated with the said revenue) be recognized in the same accounting period. For this reason, the relevance of this concept in the accrual basis of accounting cannot be overstated. In the section below, I explain the importance of this concept.

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

The US Generally Accepted Accounting Principles (GAAP) is a set of international accounting rules which originated from the United States. US GAAP can be defined as a set of accounting principles, standards and procedures that companies use to compile their financial statements (Elliott & Elliott, 2008). The International Financial Reporting Standards (IFRS) on the other hand are accounting rules originating from the United Kingdom. International Financial Reporting Standards (IFRS) are a set of accounting rules designed with a common global language for business affairs so that financial accounts of companies are understandable and comparable across international boundaries (Devinney, Pedersen & Tihanyi, 2010).

In general, cost means the amount of expenditure (actual or notional) incurred on, or attributable to a given thing.

An accounting standard is a principle that guides and standardizes accounting practices. The Generally Accepted Accounting Principles (GAAP) are a group of accounting standards that are widely accepted as appropriate to the field of accounting. Accounting standards are necessary to provide a meaning to financial statements across a wide variety of business. It facilitates uniformity in financial reporting and ensures consistency in