CH 2 FR - Generally Accepted Accounting Principles GAAP The...

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Generally Accepted Accounting Principles GAAP The rules for financial reporting and preparing financial statements Underlying assumptions and principles Basic concepts Detailed measurement and disclosure In Canada: Canadian Institute of Chartered Accountants Handbook—CICA Handbook Accounting Standards Board managed by the CICA is the Standard Setting Body Public Sector Accounting Board for standards for the public (government) sector ** By 2011 Canada will move to International Accounting Standards for all companies whose shares are traded on stock exchanges.
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Underlying concepts, assumptions and principles Separate entity assumption Monetary unit assumption Historical cost principle Going concern assumption Qualitative characteristics of Accounting Information Accounting information should be useful. Usefulness depends upon the information being: Understandable Relevant Reliable Comparable Consistent
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Modifying/Overriding General Principles Materiality an amount is considered material if it would affect
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CH 2 FR - Generally Accepted Accounting Principles GAAP The...

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