Accounting Principles
In the U.S., Generally Accepted Accounting Principles are accounting rules used to
prepare, present, and report financial statements for a wide variety of entities,
including publicly traded and privately held companies, non profit organizations, and
governments. The term is usually confined to the United States; hence it is
commonly abbreviated as US GAAP or simply GAAP. However, in the theoretical
sense, Generally Accepted Accounting Principlesencompass the entire industry of
accounting, and not only the United States. Outside the academic context, GAAP
means US GAAP. The following are basic objectives of the GAAP: provide
information that is useful to present to potential investors, creditors, and other
individuals in making rational investment and credit, provide information about
economic resources, the claims to those resources, and the changes in them, assist in
making financial decisions, assist in making long term decisions, improve the
performance of the business, and maintain records. IFRS are used in many parts of
the world, including the European Union, India, Hong Kong, Australia, Malaysia,
Pakistan, GCC countries, Russia, South Africa, Singapore, and Turkey. As of August
2008, more than 113 countries around the world, including all of Europe, currently
require or permit IFRS reporting and 85 require IFRS reporting for all domestic,
listed companies according to the U.S. Securities and Exchange Commission. It is
generally expected that IFRS adoption