The Generally Accepted Accounting Principles (GAAP) are a set of accounting rules, standards, and procedures issued by the Financial Accounting Standards Board (FASB). These principles are essential for creating consistent and transparent financial statements.
GAAP aims to improve the clarity, consistency, and comparability of financial information, ensuring that financial statements are complete, consistent, and comparable. There are 10 key principles of GAAP, including regularity, consistency, sincerity, permanence of methods, and materiality . Understanding and adhering to these principles is crucial for students studying commerce and those interested in accountancy.
A complete Guide for Gaap Principles for Grade 10, Grade 11, and Grade 12
The purpose of this Guide is to assist teachers and learners to manage accounting principles. The principles are foundations of preparing and maintaining accounting records. The Guide provides learners with a foundation towards understanding the subject Accounting. In this Guide learners shall learn about various accounting principles, their meaning and significance.