goodwill
Introduction
With the rampant rise in globalization, one would find it rather difficult to disagree that the world is flat. If we agree with the aged old adage, ”accounting is the language of business” then business enterprise around the world cannot be affording to be speaking different language while exchanging different financial result so to make them more convenient different bodies have been formed all around the world . Below are some major bodies that has unified the accounting world.
The accounting principles that are generally recognized by accountants and represents accepted accounting practices are called generally accepted accounting principles (GAAP). They are general guidelines for ensuring fair presentation of financial statements. They make financial statements relevant, objective, comparable and dependable.
At present recognized accounting institutions of different countries have come forward to prescribe principles for sound accounting practices. In India, the Institute of Chartered Accountants of India (ICAI) is instrumental in the development of the most of the accounting principles. In U.S.A., Financial Accounting Standard Board (FASB) is the principle source of GAAP. The International Accounting Standard Board (IASB) is now playing a very significant role in the formulation of GAAP for application across the countries. “Indian GAAP” are the standards notified by the central government of India under the companies (accounting standard) rules, amended according to the requirements of the companies act, 1956. This accounting standards that every company operating in India has to follow when reporting its financial results. Generally Acceptable Accounting (GAAP) Standards differ for each country as they incorporate policies and procedures that have to be followed for financial disclosures as per the standards set in each country. Under Indian GAAP, Financial statements
With the rampant rise in globalization, one would find it rather difficult to disagree that the world is flat. If we agree with the aged old adage, ”accounting is the language of business” then business enterprise around the world cannot be affording to be speaking different language while exchanging different financial result so to make them more convenient different bodies have been formed all around the world . Below are some major bodies that has unified the accounting world.
The accounting principles that are generally recognized by accountants and represents accepted accounting practices are called generally accepted accounting principles (GAAP). They are general guidelines for ensuring fair presentation of financial statements. They make financial statements relevant, objective, comparable and dependable.
At present recognized accounting institutions of different countries have come forward to prescribe principles for sound accounting practices. In India, the Institute of Chartered Accountants of India (ICAI) is instrumental in the development of the most of the accounting principles. In U.S.A., Financial Accounting Standard Board (FASB) is the principle source of GAAP. The International Accounting Standard Board (IASB) is now playing a very significant role in the formulation of GAAP for application across the countries. “Indian GAAP” are the standards notified by the central government of India under the companies (accounting standard) rules, amended according to the requirements of the companies act, 1956. This accounting standards that every company operating in India has to follow when reporting its financial results. Generally Acceptable Accounting (GAAP) Standards differ for each country as they incorporate policies and procedures that have to be followed for financial disclosures as per the standards set in each country. Under Indian GAAP, Financial statements