01.02. Types of Accounting Frameworks

4 categories of accounting users
- investors, creditors, owners (GAAP)
- regulators and supervisors (SAP)
- tax authorities
- management
GAAP Accounting
- includes actg frameworks designed for a broad range of users
- focuses on value / performance of an organization as a going concern
- assumes that the organization will continue to operate indefinitely
Regulatory / Supervisory Accounting
- more interest in runoff values than going-concern
- SAP: more emphasis on realizable values & liability settlement
Tax Accounting
- may be directed or influenced by social engineering, public policy, political or verifiability concerns
- US use SAP with modifications
Management Accounting
- many organizations create one or more additional sets of accounting frameworks on which to base their management decisions
- usually based on a combination of GAAP and regulatory

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COC2

201610

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01.02. Types of Accounting Frameworks

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Types of Accounting Frameworks

Updated

2/19/2013, 1:29:02 AM

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