Ten Industries with Special Accounting Standards
In This Chapter
Examining airline, finance company, and franchise industries
Understanding natural resource, contractor, and healthcare entities
Considering entertainment, nonprofit, and real estate companies
Accounting for a company’s software
I yak on and on in this book about the generally accepted accounting principles (GAAP) because they are such an integral part of your financial accounting course. While GAAP pertain to most nongovernmental entities, certain types of businesses must follow GAAP that are tailored to their specialized industry. That’s because the inherent nature of these industries may require modified accounting principles, financial reporting presentation, and required or recommended disclosures.
Some of these specialized instances of GAAP will probably be mentioned in your introductory financial accounting class. Also, the info in this chapter will serve you well should you select a business in any of these industries for a term paper or graded discussion topic for your class. Keep in mind that in ...