Generally Accepted Accounting Principles and Accounting Standards
This chapter will help the readers to:
- Understand the nature and purpose of GAAP.
- Visualize the impact of important accounting principles on financial reporting.
- Develop familiarity with key accounting principles.
- Apply accounting principles to accounting events.
- Appreciate requirements of Ind AS 8 relating to accounting policies.
- Understand the role of the Institute of Chartered Accountants of India (ICAI) in setting of accounting standards.
- Appreciate the need for having uniform global accounting standards.
2.1 NATURE OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
Accounting principles or GAAP are general rules guiding recording of accounting transactions. ...