GreenAngel Restates Quarterly Filings and MD&A to Comply With IFRS
View Original ArticleTue, 29 May 2012 16:51:38 -0700 VANCOUVER, BRITISH COLUMBIA-- - GreenAngel Energy Corporation reports that it has restated its quarterly financials for the three month period ending February 29, 2012. The previous financial statements were reported using Canadian Generally Accepted Accounting Principles, while the amended and restated ...
NiMin Energy Corp. Announces 2012 First Quarter Results
View Original ArticleThu, 10 May 2012 13:02:00 -0700 CARPINTERIA, CALIFORNIA-- - NiMin Energy Corp. today announced the financial results prepared in accordance with generally accepted accounting principles in the United States for the first quarter ended ...
Financial Accounting Foundation Establishes New Council to Improve Standard Setting for Private Comp
View Original ArticleWed, 23 May 2012 10:00:00 -0700 After seeking and considering extensive public comment, the Financial Accounting Foundation Board of Trustees today established a new body to improve the process of setting a
The National Security Group, Inc. Releases Earnings
View Original ArticleMon, 14 May 2012 13:00:00 -0700 Results for the three months ended March 31, 2012 and 2011, based on accounting principles generally accepted in the United States of America, were reported today as follows:
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GAAP
Generally Accepted Accounting Principles
Most companies follow what are called generally accepted accounting principles, or GAAP, and there are huge tomes in libraries and bookstores devoted to just this one topic. Unless a company states otherwise, anyone reading a financial statement can make the assumption that company has used GAAP.
If GAAP are not the principles used for preparing financial statements, then a business needs to make clear which other form of accounting they're used and are bound to avoid using titles in its financial statements that could mislead the person examining it.
GAAP are the gold standard for preparing financial statement. Not disclosing that it has used principles other than GAAP makes a company legally liable for any misleading or misunderstood data. These principles have been fine-tuned over decades and have effectively governed accounting methods and the financial reporting systems of businesses. Different principles have been established for different types of business entities, such for-profit and not-for-profit companies, governments and other enterprises.
GAAP are not cut and dried, however. They're guidelines and as such are often open to interpretation. Estimates have to be made at times, and they require good faith efforts towards accuracy. You've surely heard the phrase "creative accounting" and this is when a company pushes the envelope a little (or a lot) to make their business look more profitable than it might actually be. This is also called massaging the numbers. This can get out of control and quickly turn into accounting fraud, which is also called cooking the books. The results of these practices can be devastating and ruin hundreds and thousands of lives, as in the cases of Enron, Rite Aid and others.
