Chapter 5

Generally Accepted Accounting Principles

The corporate accounts and financial statements are prepared and presented on the basis of Generally Accepted Accounting Principles (GAAPs) as being presented above. Effective formulation of GAAPs assumes great importance in view of their far-reaching impact on the quality of reported earnings.

CHAPTER OBJECTIVES

This chapter seeks to enable you to develop knowledge and understanding of:

  1. What constitutes generally accepted accounting principles.

  2. The requirements of the Companies Act regarding accounts and financial statements.

  3. The applicability and scope of and authority attached to the ...

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