Question

what are Generally Accepted Accounting Principles

Answer 1

Dear Student
GAAP - Generally Accepted Accounting Principles (GAAPs) are a set of basic rules and procedures prescribed by the Institute of Chartered Accountants of India (ICAI) which have to be followed while preparing financial statements. GAAP's are the Accounting principles, concepts and conventions which ensure that financial reporting gives true and fair view and is transparent and consistent from one organization to another. The management and the auditors are bound by The Companies Act, 1956 to follow GAAPs.


Regards