01.02. Types of Accounting Frameworks

  1. 4 categories of accounting users
    • investors, creditors, owners (GAAP)
    • regulators and supervisors (SAP)
    • tax authorities
    • management
  2. GAAP Accounting
    • includes actg frameworks designed for a broad range of users
    • focuses on value / performance of an organization as a going concern
    • assumes that the organization will continue to operate indefinitely
  3. Regulatory / Supervisory Accounting
    • more interest in runoff values than going-concern
    • SAP: more emphasis on realizable values & liability settlement
  4. Tax Accounting
    • may be directed or influenced by social engineering, public policy, political or verifiability concerns
    • US use SAP with modifications
  5. Management Accounting
    • many organizations create one or more additional sets of accounting frameworks on which to base their management decisions
    • usually based on a combination of GAAP and regulatory
Card Set
01.02. Types of Accounting Frameworks
Types of Accounting Frameworks