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GAAP Rules

Generally Accepted Accounting Principles (GAAP) are accounting rules imposed on publicly traded companies in the United States.  The goal is to ensure that investors receive a financial information that is accurate that can be used when analyzing companies for investment purposes. GAAP rules govern topics including but not limited to revenue recognition, and balance sheet item classification. The Financial Accounting Standards Board (FASB) was appointed by the United States Securities and Exchange Commission in 1973 to take over development of GAAP rules for companies and their accountants in the United States.

© 2009 by Michael C. Dennis.  All Rights Reserved.