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Source of GAAP, accrual basis, firm structures

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-Topic 1: Identify and describe the sources of generally accepted accounting principles. Identify source hierarchy and explain why the hierarchy is important.
-Topic 2: Describe effective accounting information using the qualities of accounting information from your readings this week.
-Topic 3: Describe how an accrual based accounting system is different from a cash basis of accounting.
-Topic 4: Describe the types of business structures and the defining features of each structure

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Topic 1

As of 2009, US GAAP has only one source, the FASB codification. See quote from the FASB codification site:

"The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities. The Codification is effective for interim and annual periods ending after September 15, 2009. All previous level (a)-(d) US GAAP standards issued by a standard setter are superseded. Level (a)-(d) US GAAP refers to the previous accounting hierarchy. All other accounting literature not included in the Codification will be considered nonauthoritative. See Codification Topic 105, Generally Accepted Accounting Principles, for additional details.

The Codification is the result of a major 5-year project involving more than 200 people from multiple entities. The Codification structure is significantly different from the structure of previous standards. This Notice to Constituents provides information that will help in obtaining a good understanding of the Codification structure, content, style, and history."


So, while prior to this there was a "house of GAAP" ...

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