This ppt includes INDIAN GAAP V/S US GAAP

1. INDIAN GAAP V/S US
GAAP
Presented by:
Lakshmi H M
4th sem
2nd year M.Com

2. MEANING OF
GAAP
 Generally accepted accounting
principles
 Defined as the set of accepted
industry rules , practices and
guild lines for financial
accounting
 Includes the standards ,
convention and rules
accountsfollow in recording
and summarising , transactions
and in the preparation of
financial statement.
2

3. GAAP
3
In other words GAAP are basic
accounting principles and
guidelines which provides the
framework for more detailed
and comprehensive
accounting rules standards
and other industry specific
accounting practices.

4. 4
Accounting principles ,
concept and convention
commonly known as
generally accepted
accounting principles or
GAAPS are basic rules
that design the
parameters and
constraints within
which the accounting
operates.
INDIAN GAAP

5. INDIAN
GAAP
5
These principles are the theory base of
accounting. On the basis of which Financial
statements are prepared In other word they are
thea guid lines for preparing the financial
statements.the institute of chartered
accountants of India has issued accounting
standards to standardise the accounting
practices adopted to produce Financial
statements.The company ACT 1956 hasmade

6. WHAT is INDIAN GAAP
6
 Set of accounting standards
 Every company operates in India
has ti follow when reporting its
financial results.
 ICAI is the body in India that has
set the accounting standards
(INDIAN ACCOUNTING
STANDARDS)
 Derived mostly from the companies
act of 1956
 Revised in 2013

7. 7
FEATURES OF INDIAN GAAP
Relevance
Objectivity/reli
ability
Understanding
ability
Comparability

8. 8
Basic assumptions
Accounting entity
Going concern
Monetary unit
Time period

9. 9
Importance
 Easier reporting ,
accountability
 Making important decisions
 Easy understandability and
interpretation
 Present ability
 Consistency

10. US GAAP
 The birth of GAAp standards goes all the way
to the 1929 Financial crisis
 Us GAAP are set of rules in place in meant for
governing corporate accounting and financial.
Reporting in us
 a non -us company when presenting its
financial results in us has to fallow. Us GAAP.
 Created by the Financial accounting standards
board(FASB)
 set of guild lines that Accountants in united
states must follow .
10

11. Why US GAAP CRESTED
 Created to protect
companies,investors
andother stakeholders from
questionable accounting
practices.
 With out GAAP-companies
free to decide what financial
information to report and
how to report it.
11

12. 12
HOW GAAP WAS CREATED
American institute of certified public accountants(AICPA group
of CPAS who set guidelines by which all accounts must
practice.
Authoritative commitee originally responsible for defiindefining
accounting principles was the committee on accounting
procedures
1973AICPA and accounting principles board transferred
responsibility to financial accounting standards board that was

13. 13

14. CONCLUSION
14
 Standards have selected uniformity, transparency
reliability and comparisons in the books of
accounts it's presentation
 Accounting standards can be imprdivided the
implementation of GAAP.
 Investor have more confidence in GAAP

15. REFERENCE
15
https://youtu.be/CblbfppSoqA
https://youtu.be/W5zaVoTYzME

16. THANK
YOU!