Table of Contents
Generally accepted accounting principles (GAAP) are defined as the rules of action or conduct which are derived from experience and practice; which when prove useful become accepted as principles of accounting. They are used to maintain consistency and uniformity in accounting records throughout the country. These principles are often called by various names such as postulates, assumptions, concepts and conventions etc. The general acceptability of these principles depend of how well they satisfy the criteria of Relevance i.e. they should be relevant to the extent that it result in the information which is useful and meaning for the end user of accounting information, Objectivity i.e. they are not influenced by the personal bias and judgement of the person providing accounting information and Feasibility i.e. they can be implemented without large cost of complexities.
There are certain basic assumptions and underlying principles on which GAAP are based. Some of these areCost Benefit Principle i.e. cost of applying a principle should not be more than benefit derived from it, Materiality Principle i.e. all material information should be recorded and unimportant information is left out while making decisions, Consistency Principles i.e. rules and principles used to record transactions should remain consistent so that they remain comparable, Prudence or Conservatism Principle i.e. all potential losses should be recorded while all prospective gains should be left out.
In India, Accounting Standards (AS) are issued byAccounting Standard Board (ASF) constituted by Institute of Chartered Accountants of India (ICAI) to maintain uniformity in maintaining financial records. Accounting Standards act as both guideline and yardstick for measurement. As a general rule, they are applicable to all corporate entities. According to ICAI as on 1st September, 2014 there are 28 mandatory AS and 3 non-mandatory AS. These are as follows:
Mandatory AS:-
AS-1 deals with disclosure of accounting policies
AS-2 deals with valuation of Inventories
AS-3 deals with cash flow statement
AS-4 deals with contingencies and events occurring after the Balance Sheet date
AS-5 deals with net profit or loss for the period, prior period (period before the date of balance sheet) items and changes in accounting policies
AS-6 deals with depreciation Accounting
AS-7 deals with accounting for construction contracts
AS-9 deals with revenue Recognition
AS-10 deals with accounting for fixed assets
AS-11 deals with accounting for the effects of change in foreign exchange Rates.
AS-12 deals with accounting for Government grants
AS-13 deals with accounting for investments
AS-14 deals with accounting for amalgamation
AS-15 deals with accounting for retirement Benefits in the financial statements of employers
AS-17 deals with segment reporting
AS-18 deals with related party disclosures
AS-19 deals with leases
AS-20 deals with earning per share
AS-21 deals with consolidated financial statements
AS-22 deals with accounting for taxes on Income
AS-23 deals with accounting for investments in Associates in consolidated financialstatements
AS-24 deals with discontinued operations
AS-25 deals with interim financial reporting
AS-26 deals with intangible Assets
AS-27 deals with financial reporting of interest for joint venture
AS-28 deals with impairment of assets
AS-29 deals with provision for contingent labilities and contingent assets
Non Mandatory AS:-
AS-30 Financial Instruments: Recognition and Measurement and Limited Revisions to AS 2, AS 11 (revised 2003), AS 21, AS 23, AS 26, AS 27, AS 28 and AS 29
AS-31 Financial Instruments: Presentation
AS-32 Financial Instruments: Disclosures, and limited revision to Accounting Standard (AS) 19, Leases
Want to get more information about IFRS training and certification?
Connect with one of our consultants for more information!
Email us now at [email protected] or call us at our centralized number: 9015266266.
Upcoming Batches of Accounting and Taxation Course :-
Batch | Mode | Price | To Enrol |
---|---|---|---|
Starts Every Week | Live Virtual Classroom | 34500 | ENROLL NOW |
Check for- Accounting and Taxation Certification Course
Where is GAAP used?GAAP is used primarily by businesses reporting their financial results in the United States. International Financial Reporting Standards, or IFRS, is the accounting framework used in most other countries
Why is GAAP so important?GAAP provides standards for recording recognizable transactions and pertinent information that users of financial statements need to make effective decisions. … GAAP clarifies and narrows down the information needed to make financial reporting as accurate and relevant as possible.
Recommended Programs
Income Tax Specialist Course
by Henry Harvin®
100% Practical Income Tax Course| India's Best Certified Income Tax Course | Henry Harvin® Featured by Aaj Tak, Hindustan Times | Income Tax Course Training By Award-Winning Speakers | 2,665+ Income Tax Professionals Trained | Interactive Instructor-led Classes.
Accounting and Taxation Course
With Training
The Certified Accounting and Taxation Course (CATP) covers critical components of Accounting like GST, Income Tax, and TDS which have a crucial bearing on the modalities of Financial business operations in India. The CATP course is earmarked for professionals keen on building a successful career in Accounting and Taxation.
Best Advanced Excel Training &
Certification Online
No. 1 Ranked Advanced Excel Course in India | Trained 5,935+ Participants | Get Exposure to 11+ projects | Learn to Apply Advanced Formulas, Perform Data Analysis & Data Visualization, and Create Pivot Tables & Dashboards| Live Online Classroom Core and Brush-up Training Sessions
Tally Prime Course Course
Get Practitioner Certification
Tally Prime, the latest Tally Software used in Accounting, Taxation Software, Accounts Receivables, Accounts Payable, Inventory, Billing, and Payroll | Use Tally Prime to Calculate TDS, Income Tax, and GST | Earn a Rewarding Certification of Certified Tally Accountant (CTA), from Henry Harvin, the Award Winning Institute
Explore Popular CategoryRecommended videos for you
Online Accounting & Taxation Course Tutorial /p>
Online Accounting & Taxation Course Tutorial
Introduction to MS Excel | Best Advanced Excel Full Course
Advanced VBA - Like Operators VBA | Best Free Advanced Excel
GST Practitioner Course | GST Training
Best GST Practitioner Training
Introduction To Income tax Specialist Course
Income Tax Course Tutorial for Beginners
Tally ERP 9 Course Tutorial For Beginners
Tally ERP 9 Course Tutorial For Beginners