This document provides an overview of GAAP (Generally Accepted Accounting Principles) in India. It discusses that GAAP establishes uniform guidelines and standards for preparing financial statements so they are comparable. It outlines the objectives of GAAP such as promoting transparent financial reporting and cooperation between accountancy bodies. The document also explains the need for GAAP to make company financials understandable for investors and creditors. Some key accounting principles and standards are defined, including the matching principle, materiality principle, and standards for inventory, cash flows, and fixed assets. The Institute of Chartered Accountants of India oversees GAAP implementation.

1. GAAP analysis
Submitted by: Abhinav Yadav
Finance(3rd sem)

2. GAAP -Introduction
• accounting rules used to prepare and standardize the
reporting of financial statements
• those guidelines which help the accountants in preparing
the accounting standards in such a way that “uniformity
and comparability” in the accounts
• GAAP is implemented through measurement principles
and disclosure principles
• ICAI( Institute of Chartered Accountants of India) is the
body in India

3. Objectives of GAAP
• Promote understanding of transparent financial
reporting
• Contribute to a common strategy and framework of
reference for accountancy development
• Promote cooperation between governments, the
accountancy and other professions for evaluation of
books of accounts

4. Need For GAAP
• companies would be free to decide for themselves what
financial information to report and how to report.
• GAAP makes a company's financials comparable and
understandable so that investors, creditors can make
investment, credit and other financial decisions
• GAAP requires information on financial statements to be
relevant, reliable, comparable and consistent
• Helps to determine the financial health of the company

5. Accounting Principles
•
•
•
•
•
•
•
•
•
•
•
•
The Separate Entity Concept
The Going Concern Concept
The Principle of Conservatism or Prudence
The Money Measurement Principle
The Accounting Period Concept
Accrual basis of accounting
The Matching Principle
The Cost Concept Principle
The Consistency Principle
The Materiality or Relevance Principle
Dual aspect Principle
Substance over form

6. Accounting Standards
• A principle that guides and standardizes accounting
practices
• AS are necessary so that financial statements are
meaningful across a wide variety of businesses
• GAAP are the general guidelines but the practical
application is as prescribed by accounting standard
• Preparation of Accounting Standards is to achieve global
uniformity and comparability

7. Objectives Of Accounting Standards
• To provide information
• To harmonize different accounting processes
• To enhance the contents
• Remove variations

8. List of Accounting Standards
•
•
•
•
•
•
•
•
•
Disclosure of Accounting Policies
Valuation of Inventories
Cash Flow Statements
Depreciation Accounting
Revenue Recognition
Accounting for Fixed Assets
Accounting for Investments
Employee Benefits
Borrowing Costs

9. References
• Book referred-financial accounting for managers by
SANJAY DHAMIJA

10. Thank you