Generally Accepted Accounting Principles
for the United States, the evolving set of rules for preparing uniform financial statements for-profit businesses, nonprofit organizations and government agencies.
* Statement of Federal Financial Accounting Standards 34, The Hierarchy of Generally Accepted Accounting Principles
, Including the Application of Standards Issued by the Financial Accounting Standards Board
As part of the settlement, AIG agreed to appoint an independent consultant who will review transactions entered into between 2000 and 2004 to determine whether the transactions were used by a counterparty to violate generally accepted accounting principles
or to obtain a specified accounting or reporting result.
As stated by the authors, Generally Accepted Accounting Principles
are concerned with the measurement of economic activity--the time when such measurements are made and recorded, the disclosures surrounding these activities, and the preparation and presentation of information on the summarized economic activities in financial statements.
1.446-1(a)(2) states that a "method of accounting which reflects the consistent application of generally accepted accounting principles
in a particular trade or business in accordance with accepted conditions or practices in that trade or business will ordinarily be regarded as clearly reflecting income." Regs.
generally accepted accounting principles
-- creates complexity, he stated.
Generally, these entities are required by generally accepted accounting principles
to carry these investments at fair value.
This case illustrates the difference between the recognition of a liability and the related deduction for tax purposes on the one hand and the recognition of a liability and the related expense under generally accepted accounting principles
(GAAP) on the other.
The reason this is so crippling is that there are many gray zones in Generally Accepted Accounting Principles
that require judgments to be made.
* Enforces financial reporting under generally accepted accounting principles
developed by the Financial Accounting Standards Board.
Under the Board's revised risk-based capital rule, a bank that qualifies as a primary beneficiary and must consolidate an ABCP program that is defined as a variable interest entity under generally accepted accounting principles
(See FIN 46-R) may exclude the consolidated ABCP program's assets from risk-weighted assets provided that the bank is the sponsor of the ABCP program.