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Generally Accepted Accounting Principles. Explanation of US GAAP.


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US GAAP are the Generally Accepted Accounting Principles used by companies based in the USA or listed at Wall Street. US GAAP comprises a massive volume of standards, interpretations, opinions and bulletins and are developed by the FASB (Financial Accounting Standards Board), the accounting profession (AICPA) and the SEC (Securities and Exchange Commission).

US GAAP is a combination of authoritative standards by policy organizations and the accepted ways of doing accounting.

US GAAP SEC FASBUS GAAP standards are certainly equivalent to IAS. However, they are developed without any input from outside the US. US GAAP is very detailed, reflecting the litigious environment in the US which calls for more and more detailed regulation. US GAAP cannot be detached from regulatory intervention by the SEC.

Book: Wiley - GAAP 2004 -

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