Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition

Chapter 5

Setting the Standards

IN THIS CHAPTER

Looking back at the origins of financial accounting standards

Introducing the accountant’s code of conduct

Reviewing rules set by the Financial Accounting Standards Board

Finding out about generally accepted accounting principles

Shifting to a global focus with International Accounting Standards

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 to practice generally accepted accounting principles (GAAP) — best practices for accounting in the United States.

In this chapter, we take you on 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 road ...