![]() ![]() This ensures a fair comparison with different years. ![]() The method of finding financial results must be consistent. Any updations in the principles of the statements should be disclosed. The same standards should be followed throughout to avoid any discrepancies. There should be consistency within the corresponding financial statements. He must not adopt any unfair practices for his benefit. The accountant must be sincere enough to provide an accurate and impartial picture of the company's financial statements. RegularityThe accountant must adhere to the gap rules and regulations while forming the financial statements regularly. The ten key accounting principles that make GAAP are This helps them in taking wise future decisions.With these accounting principles, the Decision makers and investors can easily analyse The financial aspects of the company.It helps in easy understanding of the financial background of the company.It also ensures the consistency and transparency of the financial statements.It helps in the formation of revenue and balance sheets. ![]() It helps in the classification of different types of financial aspects.It standardises the different methods used in accounting across all the entities.Guide the financial statements to the general guidelines.The motive of these accounting principles are These rules are enforced and set by "The Financial Accounting Standards Board (FASB) and "The Securities and Exchange Commission (SEC). Hence these rules, universally known as Generally Accepted Accounting Principles(GAAP), are a set of principles, procedures, or standards used by companies while consolidating their financial statements for the respective financial year. It is guided by a set of accounting rules that help find appropriate results. The Generally Accepted Accounting PrinciplesĪccounting is the process of measuring, processing, and communicating the financial information of a business or corporate. ![]()
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