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Paper Topic:

Little GAAP vs Big GAAP

Running Head : Big GAAP versus little GAAP

Name

Course

Tutor

Date : Outline

Definition of GAAP

Evolution of GAAP in U . S

Historical development of theory

Current GAAP

Suggested changes

Pros and cons of differentiating accounting standards

i . Pros

ii . Cons

Standards for the future

Conceptual framework

Course of action

Conclusion . Big GAAP versus little GAAP

Generally accepted accounting principles (GAAP ) are accounting rules used in the preparation , presentation and reporting financial statements in various business entities including private and public companies

br not-for-profit organizations as well as government institutions . GAAP comprises of local accounting frameworks , an accounting laws as well as rules and accounting standards (Jefferey Dale , 2006

In the U .S , the federal government is not directly involved in the process of setting accounting rules and standards . Instead , the responsibility of establishing GAAP for private and public companies has been assigned to the Financial Accounting Standards Board (FASB Security and Exchange Commission (SEC ) is responsible for monitoring all publicly-traded companies and ensuring that they follow the set accounting standards in their financial reporting . GAAP requirements for local and state governments are regulated by the Governmental Accounting Standards Board (GASB ) while financial reporting in the federal government institutions is controlled by the Federal Accounting Standards Advisory Board (FASAB

Evolution of GAAP in U .S

In the early 20th century , a private organization of professional accountants known as the American Institute of Accountants (AIA ) was primarily involved in the development of accounting principles in U .S At this time , AIA collaborated with...

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