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What is the authoritative source of Generally Accepted Accounting Principles (GAAP) for non-governmental entities? What if...

What is the authoritative source of Generally Accepted Accounting Principles (GAAP) for non-governmental entities? What if non-governmental entities are publicly-held? What if you cannot find specific or similar guidance for your particular transaction or event – what are a few nonauthoritative sources of GAAP?

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The FASB Accounting Standards CodificationTM (Codification) will become the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities.

2) non-government entities can be held as public trusts An NGO can be created only under a public trust act. Madhya Pradesh and Rajasthan have independent state level public trust acts. States like West Bengal, Jharkhand and Bihar do not have any act to register a public trust.

A trust can be registered in one state, but the same has the scope to operate in any number of states. In the state of Maharashtra and Gujarat, all organisations that are registered as 'Society' are by default also registered as Public Trust.

3) Accounting and financial reporting practices not included in the Codification are nonauthoritative. Sources of nonauthoritative accounting guidance and literature include, for example, the following:

Practices that are widely recognized and prevalent either generally or in the industry FASB Concepts Statements American Institute of Certified Public Accountants (AICPA) Issues Papers International Financial Reporting Standards of the International Accounting Standards Board Pronouncements of professional associations or regulatory agencies Technical Information Service Inquiries and Replies included in AICPA Technical Practice Aids Accounting textbooks, handbooks, and article s.

ekkarill92 answered 1 year ago
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