What is GAAP? Generally Accepted Accounting Principles? What is GASB? Governmental Accepted Accounting Principles?

 What is GAAP? Generally Accepted Accounting Principles?  Accepted by who?  Are they laws or regulatory? What organizations are required to use then?  Does that include governmental entities? To clarify following are the 10 GAAP principles.  U.S. law and regulations require businesses (enterprises) releasing financial statements to the public and companies publicly traded on the stock exchanges and indices to follow GAAP rules.  GAAP {incorporates the following 10 principles: 1) Principle of Regularity: GAAP compliant accountants strictly adhere to established rules and regulations. 2) Principle of Consistency: consistent standards are applied throughout the financial reporting process. 3) Principle of Sincerity: GAAP - compliant accountants are committed to accuracy and impartiality. 4) Principle of Permanence of Methods: Consistent procedures are used in the preparation of all financial reports. 5) Principle of Non-compensation: all aspects of organization's performance, whether positive or negative, are fully reported with no prospect of debt compensation. 6) Principle of Prudence: Speculation does not influence the reporting of financial data. 7) Principle of Continuity: asset valuations assume the organization's operations will continue. 8) Principle of Periodicity: Reporting of revenues is divided by standard accounting periods, such as fiscal quarters or fiscal years. 9) Principle of Materiality: Financial reports fully discloses the organization's monetary position. 10) Principle of Utmost Good Faith: All involved parties are assumed to be acting honestly. GAAP confidence makes the financial reporting process transparent and standardizes, assumptions, terminology, definitions and methods. External parties can easily compare financial statements issued by GAAP-compliant entities and safely assume consistency, which allows for quick and accurate cross-enterprise comparisons.  Because GAAP standards deliver transparency and continuity, they enable investors and stakeholders to make sound, evidence-based decisions.  The consistency of GAAP compliance also allows enterprises to more easily evaluate strategic business options. GAAP consists of three parts: Basic accounting principles and Guidelines. Rules and standards issued by the Federal Accounting Standards Board (FSAB) and its Predecessor, the Accounting Standards Board (ASB).  generally accepted industry practices.  The FASB issues an officially endorsed regularly updated compendium of principles known[JR1]  as the FASB Accounting Standards codification.  The compendium includes standards based on the best practices previously established by the APB. These organizations are rooted in historic regulations governing financial reporting practices, which the federal government implemented following the 1929 stock market crash that triggered the Great Depression. All organizations do not follow the GAAP model.  Rather, particular businesses follow industry specific best Practices to reflect the nuances and complexities of different business areas.  For example, banks operate using different accounting and financial reporting methods than those used by retail businesses.  What about governmental accounting practices  GASB governmental accounting standards board and FASB standards are both sets of accounting standards used in the USA report financial accounting results.  GASB applies to governments, which means the underlying principle is to ensure that government organizations properly conduct their accounting actions so they can provide accurate and reliable information to the U.S. public. GASB must produce budget reports not GAAP reports.  Thereby, understating their finacial condition and continuty.