Basic Accounting Concepts

Basic Accounting Concepts

Generally Accepted Accounting Principles

The basis of accounting is the number of so-called generally accepted accounting principles. These principles are set by the Financial Accounting Standards Board (FASB). Established in 1973, it consists of permanent members - the leading accountants, developing new or modifying existing principles. The Council is a non-governmental organization funded by contributions from business enterprises.  Legally, the companies do not require compliance with generally accepted accounting principles established by the Council of Financial Accounting Standards Board. However, the accounting reports of most companies verified certified public accountants - members that should be public scrutiny of the divergence of standards ...