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Unformatted text preview: INDIVIDUAL WEEK 5 1 Individual Week 5 Luis D. Maym Romero University of Phoenix ACC/280 Prof. Manfredo H. Rodrguez 18:35:18 1. What are generally accepted accounting principles (GAAP)? The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. What bodies provide authoritative support for GAAP? In the United States, the authoritative body that promulgates accounting principles and GAAP alike is the financial accounting standards board (FASB). FASB is a private, non-profit organization whose primary purpose is to develop GAAP in the United States. It issues memorandums and statements that are used as guide in the preparation, interpretation and analysis of the financial statements of various business entities. 2. What elements comprise the FASBs conceptual framework? The Conceptual Framework project aims to update and refine the existing concepts to reflect the changes in markets, business practices and the economic environment that have occurred in the two or more decades since the concepts were first developed. Phases Topics A Objectives and qualitative characteristics B Definitions of elements, recognition and derecognition C Measurement D Reporting entity concept E Boundaries of financial reporting, and Presentation and...
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- Spring '11