GAAP - Generally Accepted Accounting Rules
The Generally Accepted Accounting Principles, or GAAP for short, are a set of accounting rules used to standardize the reporting of financial statements in the United States. Understanding GAAP can help you make better investing decisions.
Manufacturing Earnings with a Waive of the Pen
This morning, I was reading through the annual report of UPS, one of the largest and most profitable firms in the world, when something caught my attention. It seemed like a perfect opportunity to teach the readers of this site how small changes in accounting can substantially increase (or decrease) net income without changing a company’s economic reality.
This morning, I was reading through the annual report of UPS, one of the largest and most profitable firms in the world, when something caught my attention. It seemed like a perfect opportunity to teach the readers of this site how small changes in accounting can substantially increase (or decrease) net income without changing a company’s economic reality.
Looking Beyond the Financial Statements
Accounting and financial statements are the language of business. Still, as Charlie Munger points out, you need to look beyond the accounting and financial statements and into the underlying opportunities and risks a business faces.
Accounting and financial statements are the language of business. Still, as Charlie Munger points out, you need to look beyond the accounting and financial statements and into the underlying opportunities and risks a business faces.
Looking Past the Numbers - The Limitation of the Debt to Equ
You've probably heard portfolio managers say, "look beyond the accounting numbers and instead focus on economic reality." This article illustrates how one of the most popular financial metrics, the debt-to-equity ratio, can sometimes make an investment appear much riskier than it actually is.
You've probably heard portfolio managers say, "look beyond the accounting numbers and instead focus on economic reality." This article illustrates how one of the most popular financial metrics, the debt-to-equity ratio, can sometimes make an investment appear much riskier than it actually is.
Revenue Recognition
Revenue recognition can drastically affect the financial statements. This article explains the difference between revenue recognition methods and the practical implications for the average investor. Revenue recognition methods covered include sales basis, percentage of completion, completed contract, installment and cost recoverability.
Revenue recognition can drastically affect the financial statements. This article explains the difference between revenue recognition methods and the practical implications for the average investor. Revenue recognition methods covered include sales basis, percentage of completion, completed contract, installment and cost recoverability.
Adjusting Pension Assumptions to Manipulating Earnings
By adjusting pension assumptions, management can manipulate earnings and overstate profit on the income statement. This article discusses how the investor can spot suspicious pension adjustments.
By adjusting pension assumptions, management can manipulate earnings and overstate profit on the income statement. This article discusses how the investor can spot suspicious pension adjustments.
Chartered Accountants of Canada
This body sets the GAAP rules and regulation for Canada.
This body sets the GAAP rules and regulation for Canada.
Comprehensive United States GAAP Resources
A site dedicated to GAAP in the United States. Offers information on APB's opinions, and Generally Accepted Accounting Principles books.
A site dedicated to GAAP in the United States. Offers information on APB's opinions, and Generally Accepted Accounting Principles books.
Financial Accounting Standards Board
The FASB is the body that establishes the standards for GAAP in the United States. The official homepage is a valuable resource for anyone researching a specific accounting concept.
The FASB is the body that establishes the standards for GAAP in the United States. The official homepage is a valuable resource for anyone researching a specific accounting concept.
GAAP Accounting Books
A list of accounting books focusing on the rules of GAAP in the United States.
A list of accounting books focusing on the rules of GAAP in the United States.
GAAP in Australia
The site for GAAP in Australia. Allows users to sign up for Australian GAAP updates via email.
The site for GAAP in Australia. Allows users to sign up for Australian GAAP updates via email.
GAAP [Generally Accepted Accounting Principles] Definition
A definition of the accounting acronym GAAP.
A definition of the accounting acronym GAAP.