| A | B |
|---|
| GAAP | Generally Accepted Accounting Principles |
| AICPA | American Institute of Certified Public Accounts |
| FASB | Financial Accounting Standards Board |
| SEC | Securities and Exchange Commision |
| Securities | A negotiable financial instrument representing financial value |
| Securities Act of 1933 | Truth in Securities Act |
| Purpose of Act of 1933 | Requires that any offer of sale of securities be registered |
| Securities Act of 1934 | Governs the seconndary trading of securities in the US |
| GASB | Governmental Accounting Standards Board |
| Relevance | Capable of making a difference in decision-making of the user |
| Reliability | Information that is verifiable, faithful, and reasonably free from error and bias |
| Comparability | Helps detect and explain similarities and differences between governments |
| Consistency | Using the same method of accounting from one period to another |
| Materiality Constraint | Big enough to effect the user's decison-making process |
| Conservatism Constraint | When given two alternatives, accountants will choose the less optimistic option |
| Recognition concept | States that an item should be recorded in financial statements when it can be defined, meeasured, relevant, and reliable |
| Measurement Concept | Every transaction is measured by the stated unit of measurement |
| Objectivity | Being fair without bias or personal opinion |
| Economic Business Entity Assumption | All business transactions should be seperate from those of the owners |
| Going Concern Assumption | Financial statements are prepared under the belief that the company will remain in business indefinitely |
| Monetary Unit Assumption | Assumes a stable currency is going to be the unit of record |
| Time Period Assumption | The entity's activities are separated into specific time periods |
| Cost Period Assumption | Assets are recorded at original cost, not fair market value |
| Full Disclosure Principle | All information of the operations and financial position of any entity must be reported in the required time period |
| Revenue Recognition Principle | Revenue is recognized as earned upon product/service completion |
| Matching Principle | Costs of doing business are recorded in the same period as the revenue they generate, regardless of the actual payment |
| IFRS | International Financial Reporting Standards |
| IASB | International Accounting Standards Board |
| APB | Accounting Principles Board |
