Generally Accepted Accounting Principles (United States)

Generally Accepted Accounting PrinciplesGAAPU.S. GAAPU.S. generally accepted accounting principlesUS GAAPaccounting principlesGAAP (General Accepted Accounting Principles)North American GAAP standardsstandardsUnited States Generally Accepted Accounting Principles
Generally Accepted Accounting Principles (GAAP or U.S. GAAP) is the accounting standard adopted by the U.S.wikipedia
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International Financial Reporting Standards

IFRSinternational financial reporting standardInternational Accounting Standards
While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the latter differ considerably from GAAP and progress has been slow and uncertain. With the convergence of the U.S. GAAP and the international IFRS accounting systems, as the highest authority over International Financial Reporting Standards, the International Accounting Standards Board is becoming more important in the United States.
Criticisms of IFRS are (1) that they are not being adopted in the US (see US GAAP), (2) a number of criticisms from France and (3) that IAS 29 Financial Reporting in Hyperinflationary Economies had no positive effect at all during 6 years in Zimbabwe's hyperinflationary economy.

Federal Accounting Standards Advisory Board

Federal Accounting Standards Advisory Board (FASAB)
Other organizations involved in determining United States accounting standards include the Governmental Accounting Standards Board (GASB), formed in 1984; and the Federal Accounting Standards Advisory Board (FASAB), formed in 1990.
FASAB is designated as the body that sets U.S. generally accepted accounting principles (GAAP) for the United States Government and its component entities, referred to as federal financial reporting entities.

XBRL

eXtensible Business Reporting LanguageeXtensible Business Reporting Language (XBRL)inline XBRL
The Financial Accounting Standards Board (FASB) has published U.S. GAAP in Extensible Business Reporting Language (XBRL) beginning in 2008.
Development of the SEC's initial US GAAP Taxonomy was led by XBRL US and was accepted and deployed for use by public companies in 2008 in phases, with the largest filers going first: foreign companies which use International Financial Reporting Standards (IFRS) are expected to submit their financial returns to the SEC using XBRL once the IFRS taxonomy has been accepted by the SEC.

Governmental Accounting Standards Board

GASB
Other organizations involved in determining United States accounting standards include the Governmental Accounting Standards Board (GASB), formed in 1984; and the Federal Accounting Standards Advisory Board (FASAB), formed in 1990.
The Governmental Accounting Standards Board (GASB) is the source of generally accepted accounting principles (GAAP) used by state and local governments in the United States.

Accounting standard

GAAPgenerally accepted accounting principlesaccounting standards
Generally Accepted Accounting Principles (GAAP or U.S. GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC).
United States - Generally Accepted Accounting Principles (United States) Domestic firms typically report in this format. Foreign firms that trade in the U.S. typically report in IFRS format (above).

Convergence of accounting standards

convergenceadopting the IFRSconverge
As of 2010, the convergence project was underway with the FASB meeting routinely with the IASB.
In the United States, the Financial Accounting Standards Board (FASB) is working with the International Accounting Standards Board (IASB) to reduce or eliminate the differences between United States Generally Accepted Accounting Principles (US GAAP) and the IFRS, in particular according to the convergence programme laid out by a 2006 memorandum of understanding, which was updated in 2008.

List of FASB pronouncements

Statement of Financial Accounting StandardsStatements of Financial Accounting Standards7 concepts published to date
Statements of Financial Accounting Concepts – first issued in 1978. They are part of the FASB's conceptual framework project and set forth fundamental objectives and concepts that the FASB use in developing future standards. However, they are not a part of GAAP. There have been 7 concepts published to date.
This article is a list of Financial Accounting Standards Board (FASB) pronouncements, which consist of Statements of Financial Accounting Standards ("SFAS" or simply "FAS"), Statements of Financial Accounting Concepts, Interpretations, Technical Bulletins, and Staff Positions, which together present rules and guidelines for preparing, presenting, and reporting financial statements within the United States according to generally accepted accounting principles ("GAAP") in the United States Of America, of which this list makes up a substantial part.

Other comprehensive basis of accounting

Other comprehensive basis of accounting
Other comprehensive basis of accounting (OCBOA) in United States accounting refers to a system of accounting other than GAAP.

List of Accounting Principles Board Opinions

31 APB opinions and 4 statementsissued 31 opinionsOpinion 25
In 1939, urged by the SEC, the AICPA appointed the Committee on Accounting Procedure (CAP). During the years 1939 to 1959 CAP issued 51 Accounting Research Bulletins that dealt with a variety of timely accounting problems. However, this problem-by-problem approach failed to develop the much needed structured body of accounting principles. Thus, in 1959, the AICPA created the Accounting Principles Board (APB), whose mission it was to develop an overall conceptual framework. It issued 31 opinions and was dissolved in 1973 for lack of productivity and failure to act promptly. After the creation of the FASB, the AICPA established the Accounting Standards Executive Committee (AcSEC). It publishes:
Its mission was to develop an overall conceptual framework of US generally accepted accounting principles (US GAAP).

Convention of conservatism

conservative
Conservatism principle: when choosing between two solutions, the one which has the less favorable outcome is the solution which should be chosen (see convention of conservatism)
U.S. GAAP

List of FASB Interpretations

50 interpretations published to dateFASB 8
Interpretations – modify or extend existing standards. There have been around 50 interpretations published to date.
Interpretations are a part of the U.S. Generally accepted accounting principles (US GAAP).

Financial Accounting Standards Board

FASBFederal Accounting Standards BoardFinancial Accounting Standards
The Financial Accounting Standards Board (FASB) has published U.S. GAAP in Extensible Business Reporting Language (XBRL) beginning in 2008. In 1973, the Accounting Principles Board was replaced by the Financial Accounting Standards Board (FASB) under the supervision of the Financial Accounting Foundation with the Financial Accounting Standards Advisory Council serving to advise and provide input on the accounting standards.

American Institute of Certified Public Accountants

American Institute of Certified Public Accountants (AICPA)AICPAAmerican Institute of CPAs
Accounting standards have historically been set by the American Institute of Certified Public Accountants (AICPA) subject to Securities and Exchange Commission regulations.

Accounting Principles Board

The AICPA first created the Committee on Accounting Procedure in 1939 and replaced that with the Accounting Principles Board in 1959.

Financial Accounting Foundation

In 1973, the Accounting Principles Board was replaced by the Financial Accounting Standards Board (FASB) under the supervision of the Financial Accounting Foundation with the Financial Accounting Standards Advisory Council serving to advise and provide input on the accounting standards.

International Accounting Standards Board

International Accounting Standards Board (IASB)IASB(IASB) International Accounting Standards Board
With the convergence of the U.S. GAAP and the international IFRS accounting systems, as the highest authority over International Financial Reporting Standards, the International Accounting Standards Board is becoming more important in the United States.

Currency

currenciesforeign currencycoinage
Monetary Unit: A stable currency is the unit of record. The FASB accepts the nominal value of the U.S. dollar as the monetary unit of record, unadjusted for inflation.

United States dollar

$US$USD
Monetary Unit: A stable currency is the unit of record. The FASB accepts the nominal value of the U.S. dollar as the monetary unit of record, unadjusted for inflation.

Accounting period

[accounting] periodperiodPeriodicity
Periodicity: The economic activities of an enterprise can be divided into artificial time periods.

Going concern

forevergoing-concern
Going Concern: Continuation of an entity as a going concern is presumed.

Historical cost

historic costcostshistorical cost accounting
Historical cost principle: Companies must account for and report the acquisition costs of assets and liabilities rather than their fair market value. This principle provides information that is reliable (removing the opportunity to provide subjective and potentially biased market values), but not very relevant. Thus there is a trend toward the use of fair values. Most debts and securities are now reported at market values.

Fair market value

fair marketfair rental valuefair-market value
Historical cost principle: Companies must account for and report the acquisition costs of assets and liabilities rather than their fair market value. This principle provides information that is reliable (removing the opportunity to provide subjective and potentially biased market values), but not very relevant. Thus there is a trend toward the use of fair values. Most debts and securities are now reported at market values.

Revenue recognition

realizedRealizationrecognized
Revenue recognition principle: Companies should record revenue when earned but not when received. The flow of cash does not have any bearing on the recognition of revenue. This is the essence of accrual basis accounting. Conversely, however, losses must be recognized when their occurrence becomes probable, whether or not it has actually occurred. This comports with the constraint of conservatism, yet brings it into conflict with the constraint of consistency, in that reflecting revenues/gains is inconsistent with the way in which losses are reflected.