generally accepted accounting principles gaap book

#Generally accepted accounting principles gaap book professional#

In Canada, the Chartered Professional Accountants of Canada (CPA Canada), which publishes the CPA Handbook on accounting, is the leading source of Canadian GAAPs. However, although lawyers do not require technical expertise, they should be sufficiently familiar with GAAP and IFRS in drafting domestic and international contracts. For example, in a lawsuit involving the appropriate accounting treatment of inventory valuation, lawyers can rely on professional opinions on the appropriate principles to apply. Professionals rely upon accountants to explain the technical details of particular principles. Hence, finance is littered with accounting scandals. However, as with all languages, there can be misinterpretations and distortions, whether accidental or deliberate. GAAPs comprise assumptions, principles, standards, rules and conventions for preparing and presenting financial statements. When accounting rules become generally accepted by business and the appropriate authorities, we refer to them an 'generally accepted accounting principles' (GAAPs), which are essentially the rules within which accountants are supposed to operate. In subsequent Parts, we will examine specific tax rules of accounting. In this Part, we commence with general principles. We refer to these rules as concepts and principles, which also provide the foundation for calculations of taxable income under the Income Tax Act ('Act'). As with all languages, there are certain rules and conventions that we follow to make the language universally understandable and acceptable.

TORONTO – Accounting is the language of the world of finance and taxation. Vern Krishna, FCGA, FCPA, CM, QC is a tax lawyer with TaxChambers LLP in Toronto.

Generally accepted accounting principles gaap book