Mexico City Metro Map on And the GAAP hierarchy lays out which authoritative sources shall guide the recording of transactions. Indeed, principles and rules of conduct are very distinct. For example, assorted accounting measurements may have several accepted procedures or rules for financial statement representation; however, GAAP requires that these procedures follow the consistency principle, meaning that measurements are not subject to the whims of deliberate misrepresentation from one accounting period to the next. In other words, a company Generally Accepted Accounting Principles 339 adopting a certain accounting principle to disclose specified information must use that principle in the same manner from one period to the next, and if that principle changes, that fact must be disclosed along with the effects of the change. Another broad GAAP principle is the asset/liability measurement principle, that measures assets and liabilities by different attributes that depend on the nature of the asset/liability, and the relevance and reliability of the attribute measured. GAAP also has broad principles dealing with disclosure, the matching of revenues and expenses, revenue recognition, and the monetary unit assumption. GAAP principles, overall, are those that have substantial authoritative support, and they are principles that are evaluated on the basis of how much they contribute to the objectives of the financial-reporting process. Mexico City Metro Map 2016.
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