GAAP and the Standards

Reviewing the prior year working papers, I found myself reading this documentation (and I’m quoting it verbatim):

At present time the client accounting department have no in place processes to identify significant changes in generally accepted accounting principles promulgated by relevant authoritative bodies , the client alternatively is to consult with the auditors regarding that and to consult with the group.

Relevant authoritative bodies like the IASB do not promulgate generally accepted accounting principles. Instead, they promulgate accounting standards based on accounting principles that will yield comparable results and reports among companies especially in the same industries.

Generally Accepted Accounting Principles (GAAP) are the principles developed and adopted through norms and thus generally accepted, while accounting starndards like the IFRS are a means to formalize and document such general principles.

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