Difference between GAAP and Statutory Accounting

Statutory Accounting Principles, also known as SAP, are used to prepare the financial statements of insurance companies. ... On the other hand, Generally Accepted Accounting Principles or GAAP provides a common set of accounting standards, procedures and rules that are defined by the professional accountancy body.

1. What is statutory accounting?
2. What is statutory reporting in accounting?
3. What is the difference between GAAP and GASB?
4. What is a stat entry in accounting?
5. What are non statutory accounts?
6. What are the 5 types of financial statements?
7. What are non statutory reports?
8. What are the contents of a statutory report?
9. What is the difference between statutory and management accounts?
10. What are the 4 principles of GAAP?
11. Do nonprofits have to follow GAAP?
12. Is FASB and GAAP the same?

What is statutory accounting?

The term statutory signifies that statutory auditing is necessary. ... During a financial audit, reports of a company with respect to revenue or benefits, returns on investment, expenditures, and other things can be included in the audit process.

What is statutory reporting in accounting?

Statutory reporting is the mandatory submission of financial and non-financial information to a government agency. ... In many countries, International Financial Reporting Standards (IFRS) has replaced country-specific Generally Accepted Accounting Principles for statutory reporting.

What is the difference between GAAP and GASB?

The GASB is one of two boards that establishes GAAP. The other is the Financial Accounting Standards Board (FASB). While the GASB has jurisdiction over financial reporting by governmental entities, the FASB establishes rules for private sector accounting. ... The GASB originally consisted of five members.

What is a stat entry in accounting?

STAT is a set of accounting standards and procedures that insurance companies use to report their financial data.

What are non statutory accounts?

'Non-statutory accounts' are accounts or other published financial information that are not the company's statutory accounts (e.g. simplified accounting information such as an account in any form claiming to be a balance sheet or profit and loss account relating to the financial year of a company or group).

What are the 5 types of financial statements?

Those five types of financial statements including income statement, statement of financial position, statement of change in equity, statement of cash flow, and the Noted (disclosure) to financial statements.

What are non statutory reports?

What is a Non-Statutory report. Non-statutory reports are prepared in order to help the board of directors or top executives to take a quality decision for the effective control and management of business organization but not required under the provisions of any law.

What are the contents of a statutory report?

Contents of a Statutory Report

Shares allotted: The total number of shares allotted distinguishing those allotted as fully paid up, partly paid up, shares issued for consideration other than cash etc. 2. Cash received: The total amount of cash received by the company in respect of all the shares allotted. 3.

What is the difference between statutory and management accounts?

While statutory accounts break down the financial actions taken by the company during the year, management accounts are prepared for internal decision making. ... Management accounts look at specific details useful to the management, for instance, fluctuations in specific sales.

What are the 4 principles of GAAP?

Four Constraints

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

Do nonprofits have to follow GAAP?

Both nonprofits and government agencies must follow GAAP, the Generally Accepted Accounting Principles. GAAP's main objective is ensuring that financial information is reported on effectively and efficiently. ... Nonprofits – FASB (Financial Accounting Standards Board)

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.