U - Acounting Glossary
Accounting definitions.
Source: Wikipedia.org
UK
generally accepted accounting principles
The Generally Accepted Accounting Principles in
the UK, or UK GAAP, are the overall body of regulation
establishing how company accounts must be prepared
in the United Kingdom. This includes not only
accounting standards, but also UK company law.
Accounting standards derive from a number of sources.
The chief standard-setter is the Accounting Standards
Board (ASB), which issues standards called Financial
Reporting Standards (FRSs). The ASB is a private-sector
organisation, funded by the accounting firms,
and it replaced the Accounting Standards Committee
(ASC), which was disbanded in 1990 following a
number of criticisms of its work. To the extent
that the ASC's pronouncements, known as Statements
of Standard Accounting Practice (SSAPs), have
not been replaced by FRSs, they remain in force.
US generally accepted
accounting principles
Generally accepted accounting principles (GAAP)
are the accounting rules used to prepare financial
statements for publicly traded companies and many
private companies in the United States. In the
United States, as well as other countries practicing
English common law system, the government does
not set accounting standards, in the belief that
the private sector has better knowledge and resources.
The GAAP is not written in law, although the SEC
requires that it be followed in financial reporting
by publicly traded companies.
