Pakistan Metro Map on Since there is no official, published list of principles, accountants must be familiar with this hierarchy, and the available sources within each category, in order to make proper judgments in a hazy and sometimes ambiguous environment. The ambiguity contention then brings us to GAAP and its fundamental objectives. It was originally intended to be a set of principles, which are fundamental concepts and not specific rules to guide conduct. Though the rules, practices, conventions, and procedures used by accountants are subject to change, the purpose of the implementation of GAAP was to give the accounting industry a guiding set of principles to prevail throughout changes in the business environment and actual accounting practices.
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GAAP principles, however, are mostly derived from tradition or specific practice over time. This is what has caused GAAP to be critically referred to, by its critics, as mere working rules of practice as opposed to an actual model set of principles. However, the major components of GAAP are principle- based, while the various conventions and practices for the various components are generally driven by accepted norms, rules, and conventions within the industry.
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