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gaap analysis

hi

What is the meaning of GAAP analysis & the use of it.

please anyone tell me.

Ankita

Former Member
Former Member replied

Generally Accepted Accounting Principles (GAAP): is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements.

Financial accounting information must be assembled and reported objectively. Third-parties who must rely on such information have a right to be assured that the data are free from bias and inconsistency, whether deliberate or not. For this reason, financial accounting relies on certain standards or guides that are called "Generally Accepted Accounting Principles" (GAAP).

There are certain Principles of GAAP:

Principle of regularity,Principle of sincerity,Principle of the permanence of methods,Principle of non-compensation,Principle of prudence,Principle of continuity,Principle of periodicity etc..........

hope its useful,

Rgds,

R.Ramakrishnaraj

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