GAAP stands for Generally Accepted Accounting Principles and are those that have considerable authoritative support. They are also generally known as Accounting Standards. GAAP is defined through a single statement - ‘the meanings of ‘present fairly in conformity with generally accepted accounting principles’ in the independent auditors report’.
In America, most companies that use GAAP use the same accounting rules. The rules are set out by the FASB, the Financial Accounting Standards Board. This is a non-profit organisation and more recently, pronouncements come as Statements of the Financial Accounting Board (SFAB).
In the UK the GAAP rules are quite similar and it is the body that establishes how company accounts are set out across the United Kingdom. In the UK, the body that supports the GAAP is the ASB, the Accounting Standards Board, which is part of the Financial Reporting Council. It replaced the prior body, Accounting Standards Committee which was disbanded in 1990 due to several issues within.
The current UK legislation for GAAP is the Companies Act (2006). This act incorporates much of European law and sets out certain minimum reporting requirements.
In America, most companies that use GAAP use the same accounting rules. The rules are set out by the FASB, the Financial Accounting Standards Board. This is a non-profit organisation and more recently, pronouncements come as Statements of the Financial Accounting Board (SFAB).
In the UK the GAAP rules are quite similar and it is the body that establishes how company accounts are set out across the United Kingdom. In the UK, the body that supports the GAAP is the ASB, the Accounting Standards Board, which is part of the Financial Reporting Council. It replaced the prior body, Accounting Standards Committee which was disbanded in 1990 due to several issues within.
The current UK legislation for GAAP is the Companies Act (2006). This act incorporates much of European law and sets out certain minimum reporting requirements.
