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GAAP and Financial Reports

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Managers and non-accounting personnel can have a hard time deciphering standard financial statements. There are two possible solutions to the problem. They are making changes to get GAAP to recognize accounting for lean or having two separate financial reports.
1. What are the advantages and disadvantages of GAAP recognizing accounting for Lean?
2. What are the advantages and disadvantages of having two seperate financial reports?

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Solution Summary

The solution contain step-by-step explanations of lean accounting, as well as sources used.

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Step 1
The advantages of GAAP recognizing accounting for Lean is that Lean will get credibility; Also, GAAP may insist on defining minimum standards for lean. The process of lean accounting may become more systematic, more programs in universities will teach lean, and managers of more companies may demand lean.
The disadvantages of GAAP recognizing accounting for lean is that GAAP is a common set of accounting principles, standards, and procedures. GAAP is not a person or a body that can recognize anything. GAAP is the accepted way of recording and reporting accounting information. On the other hand lean accounting has the purpose of ...

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