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GAAP analysis
GAAP analysis
GAAP analysis
GAAP analysis
GAAP analysis
GAAP analysis
GAAP analysis
GAAP analysis
GAAP analysis
GAAP analysis
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GAAP analysis

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  • 1. GAAP analysis Submitted by: Abhinav Yadav Finance(3rd sem)
  • 2. GAAP -Introduction • accounting rules used to prepare and standardize the reporting of financial statements • those guidelines which help the accountants in preparing the accounting standards in such a way that “uniformity and comparability” in the accounts • GAAP is implemented through measurement principles and disclosure principles • ICAI( Institute of Chartered Accountants of India) is the body in India
  • 3. Objectives of GAAP • Promote understanding of transparent financial reporting • Contribute to a common strategy and framework of reference for accountancy development • Promote cooperation between governments, the accountancy and other professions for evaluation of books of accounts
  • 4. Need For GAAP • companies would be free to decide for themselves what financial information to report and how to report. • GAAP makes a company's financials comparable and understandable so that investors, creditors can make investment, credit and other financial decisions • GAAP requires information on financial statements to be relevant, reliable, comparable and consistent • Helps to determine the financial health of the company
  • 5. Accounting Principles • • • • • • • • • • • • The Separate Entity Concept The Going Concern Concept The Principle of Conservatism or Prudence The Money Measurement Principle The Accounting Period Concept Accrual basis of accounting The Matching Principle The Cost Concept Principle The Consistency Principle The Materiality or Relevance Principle Dual aspect Principle Substance over form
  • 6. Accounting Standards • A principle that guides and standardizes accounting practices • AS are necessary so that financial statements are meaningful across a wide variety of businesses • GAAP are the general guidelines but the practical application is as prescribed by accounting standard • Preparation of Accounting Standards is to achieve global uniformity and comparability
  • 7. Objectives Of Accounting Standards • To provide information • To harmonize different accounting processes • To enhance the contents • Remove variations
  • 8. List of Accounting Standards • • • • • • • • • Disclosure of Accounting Policies Valuation of Inventories Cash Flow Statements Depreciation Accounting Revenue Recognition Accounting for Fixed Assets Accounting for Investments Employee Benefits Borrowing Costs
  • 9. References • Book referred-financial accounting for managers by SANJAY DHAMIJA
  • 10. Thank you

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