Accounting Standards Board

Posted on October 28, 2011 by Admin
Accounting Standards Board

Accounting Standards Board

GAAP is a collection of methods used to process, prepare, and present public accounting information. GAAP is overall very general in its methods, as it needs to be somewhat applicable to many different types of industries. GAAP can be principle-based or specific technical requirements. Due to the fact that in many instances it is flexible and general, most industries in the United States are expected to follow GAAP principles.

Although different organizations contribute to GAAP, the Financial Accounting Standards Board (FASB) is the main contributor to GAAP. This is done through one of four categories of methods which differ on method and level of importance.

FASB is an organization that has been granted the authority to establish generally accepted accounting principles (GAAP) by the Securities and Exchange Commission (SEC).