Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

Chapter 1

Brushing Up on Accounting Standards

IN THIS CHAPTER

Looking back at the origins of financial accounting standards

Introducing the accountant’s code of conduct (set by the AICPA)

Reviewing rules set by the Financial Accounting Standards Board (FASB)

Finding out about generally accepted accounting principles (GAAP)

Although accountants often ply their trade as freelancers, accounting isn’t a free-for-all. Accountants are expected to operate according to a professional code of conduct and practice generally accepted accounting principles (GAAP) — best practices for accounting in the United States.

This chapter begins with a whirlwind tour through the history of accounting that highlights the origins of accounting standards. Following this brief historical account is an overview of the financial accounting code of professional conduct, which is set by the American Institute of Certified Public Accountants (AICPA). These standards give you a roadmap to follow when you’re trying to figure out how to interact with your clients or employer. The standards also explain how to handle ...