CONCEPTS TO FINANCIAL STATEMENTS

Concepts to Financial Statements



Concepts to Financial Statements

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles are the accounting principles generally accepted and used by companies based in the United States. Generally Accepted Accounting Principles is the standards of accounting used in the United States and certain other countries. GAAP is different in particular, on the International Financial Reporting Standards by the fact that the GAAP accounting treatment is regulated in detail certain practical situations.

International Accounting Standards

International Financial Reporting Standards is a set of documents (standards and interpretations), regulating the rules of the financial statements required for external users to make economic decisions for the company.

IFRS, in contrast to some national reporting rules, standards are based on principles rather than hard-coded rules. The aim is that in any practical situation the drafters to follow the spirit of the principles, rather than trying to find loopholes in the clearly defined rules, which would circumvent any of the basic provisions. Among the principles: the principle of accrual (accrual basis), the principle of continuity (going concern), prudence (prudence), appropriateness (relevance) and several others (Walton, 2009).

Securities and Exchange Commission

The Securities and Exchange Commission (SEC) is the federal U.S. regulation and supervision of financial markets. It's sort of the "policeman of the Stock Exchange "American, functions generally similar to those of the AMF French. Financial laws and regulations that regulate the financial market in the United States come from the principle that every investor, institutional or private, must have access to a minimum of information before buying and for the duration of shareholding (Young, 2008).

The main function of the Securities and Exchange Commission (SEC) is to protect investors and maintain the integrity of securities markets. Because a growing number of new investors are flocking to markets to ensure its future, pay for their homes, ...