Thanks for using BrainMass. Have a good day.
How does GAAP affect financial reporting?
Instead of reporting most assets and liabilities with its fair market value, GAAP prefers companies to account and report based on acquisition costs. This is because, GAAP focus only on the fact that information must be reliable, but not very relevant. Most debts and securities ...
This solution is comprised of two paragraphs, explaining in detail how GAAP affects financial reporting.