Generally Accepted Accounting Principles (GAAP) Generally Accepted Accounting Principles (GAAP) encompass a set of rules and standards that govern the preparation of financial statements in a manner that is clear, consistent, and comparable across different entities. These guidelines serve multiple crucial purposes, establishing a framework within which companies can develop their financial reports. The overarching…
Financial Accounting Standards Board (FASB) The Financial Accounting Standards Board (FASB) plays a crucial role in the realm of financial accounting and reporting. Established in 1973, FASB was created to establish and improve generally accepted accounting principles (GAAP) within the United States. As an independent body, its primary objective is to develop standards that provide…
International Financial Reporting Standards or IFRS Standards International Financial Reporting Standards (IFRS) represent a set of guidelines and principles for financial reporting that is designed to ensure consistency, transparency, and comparability across international boundaries. Established by the International Accounting Standards Board (IASB), these standards have gained significant importance in the global finance landscape, enabling stakeholders—including…