Difference between GAAP and OCBOA

A key difference between GAAP-basis financial statements and those prepared under OCBOA is that the latter does not require a statement of cash flows. One criticism of OCBOA statements is that disclosures are not adequate. ... Income-tax-basis financial statements. Cash-basis and modified-cash-basis financial statements.

1. Is FASB and GAAP the same?
2. What is the difference between GAAP and GAAS?
3. Is GAAP and IFRS the same?
4. What is the difference between tax basis and GAAP?
5. What are the 4 principles of GAAP?
6. Is GAAP legally binding?
7. What are the 3 types of GAAS?
8. What are the 10 GAAS standards?
9. What is the purpose of GAAS?
10. Does Apple use GAAP or IFRS?
11. What are the similarities and differences between GAAP and IFRS?
12. Which is better IFRS or GAAP?

Is FASB and GAAP the same?

Generally accepted accounting principles, or GAAP, are a set of rules that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices.

What is the difference between GAAP and GAAS?

GAAP (Generally Accepted Accounting Principles) ensures to have some standards in preparing the financial statements (accounting aspect) of a company, while GAAS (Generally Accepted Auditing Standards) provides a framework to prepare a transparent and reliable audit report of a company.

Is GAAP and IFRS the same?

The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. This disconnect manifests itself in specific details and interpretations. Basically, IFRS guidelines provide much less overall detail than GAAP.

What is the difference between tax basis and GAAP?

There are also differences in terminology. Under GAAP, companies report revenues, expenses and net income. Conversely, tax-basis entities report gross income, deductions and taxable income. ... Under GAAP, the cost of a fixed asset (less its salvage value) is capitalized and systematically depreciated over its useful life.

What are the 4 principles of GAAP?

Four Constraints

The four basic constraints associated with GAAP include objectivity, materiality, consistency and prudence.

Is GAAP legally binding?

Although it is not written in law, the U.S. Securities and Exchange Commission (SEC) requires publicly traded companies and other regulated companies to follow GAAP for financial reporting. ... The SEC does not set GAAP; GAAP is primarily issued by the Financial Accounting Standards Board (FASB).

What are the 3 types of GAAS?

The generally accepted auditing standards (GAAS) are the standards you use for auditing private companies. GAAS come in three categories: general standards, standards of fieldwork, and standards of reporting.

What are the 10 GAAS standards?

10 Generally Accepted Auditing Standards

• General Standards. Adequate technical training and proficiency. Independence in mental attitude. ...
• Standards of Fieldwork. Adequate planning and proper supervision. Understanding the internal control structure. ...
• Standards of Reporting. Financial statements presented by GAAP. Consistency in the application of GAAP.

What is the purpose of GAAS?

Generally accepted auditing standards (GAAS) are a set of principles that auditors follow when reviewing a company's financial records. GAAS helps to ensure the accuracy, consistency, and verifiability of an auditors' actions and reports.

Does Apple use GAAP or IFRS?

Apple Inc., along with other companies like Cisco and other companies show their earnings in non-GAAP (generally accepted accounting principles) figures, as they are believed to reflect their earnings better.

What are the similarities and differences between GAAP and IFRS?

GAAP vs. IFRS. A major difference between GAAP and IFRS is that GAAP is rule-based, whereas IFRS is principle-based. With a principle based framework there is the potential for different interpretations of similar transactions, which could lead to extensive disclosures in the financial statements.

Which is better IFRS or GAAP?

U.S. GAAP: An Overview. By being more principles-based, IFRS, arguably, represents and captures the economics of a transaction better than GAAP. Some of the differences between the two accounting frameworks are highlighted below.