PART VII ACCOUNTING PRINCIPLES Generally accepted accounting principles, also called concepts and standards, are needed to assure accounting information is reliable, understandable, and comparable. Official sources for these principles began with the American Institute of Certified Public Accounts (AICPA), whose Accounting Principles Board issued 31 formal opinions. AICPA has been replaced by the Financial Accounting Standards Board (FASB). Strongly independent and consisting of accounting professionals from public, governmental, industrial, and educational sectors, FASB has issued many Statements of Financial Accounting Standards. A third authority, the Securities and Exchange Commission (SEC), works closely with the FASB. Both official standards and practices generally followed by the profession are summarized by this Learning Unit. ACCOUNTING ENTITY CONCEPT An economic unit, which may be a person, business, government, organization, or part thereof, is being accounted for. GOING CONCERN CONCEPT
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This note was uploaded on 10/27/2009 for the course MBA 1918272 taught by Professor Peter during the Fall '09 term at Aberystwyth University.