1. Public companies in the United States must follow GAAP when their accountants compile their financial statements. [ 2. GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information 3. GAAP aims to improve the clarity, consistency, and comparability of the communication of non financial information. 4. Internationally, the equivalent to GAAP in the United States is referred to as international financial reporting standards (IFRS). [ ] 5. IFRS is followed in over 120 countries, excluding those in the European Union (EU). 6. Understanding GAAP: GAAP helps govern the world of accounting according to general rules and guidelines. It attempts to standardize and regulate the definitions, assumptions, and methods used in accounting across all industries. 7. The ultimate goal of GAAP is ensure a company's financial statements are complete, consistent, and comparable. This makes it difficult for investors to analyze and extract useful information from the company's financial statements, including trend data over a period of time. - 8. An income statement: presents the revenues and expenses and resulting net income or net loss for a specific period of time. 9. A Balance Sheet: summarizes the changes in owner's equity for a specific period of time.[ ] 10. An owner's equity statement: reports the assets, liabilities, and owner's equity at a specific date. ] *** END OF ASSIGNMENT*** 5 1. Public companies in the United States must follow GAAP when their accountants compile their financial statements. [ 2. GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information 3. GAAP aims to improve the clarity, consistency, and comparability of the communication of non financial information. 4. Internationally, the equivalent to GAAP in the United States is referred to as international financial reporting standards (IFRS). [ ] 5. IFRS is followed in over 120 countries, excluding those in the European Union (EU). 6. Understanding GAAP: GAAP helps govern the world of accounting according to general rules and guidelines. It attempts to standardize and regulate the definitions, assumptions, and methods used in accounting across all industries. 7. The ultimate goal of GAAP is ensure a company's financial statements are complete, consistent, and comparable. This makes it difficult for investors to analyze and extract useful information from the company's financial statements, including trend data over a period of time. - 8. An income statement: presents the revenues and expenses and resulting net income or net loss for a specific period of time. 9. A Balance Sheet: summarizes the changes in owner's equity for a specific period of time.[ ] 10. An owner's equity statement: reports the assets, liabilities, and owner's equity at a specific date. ] *** END OF ASSIGNMENT*** 5