Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 1 - Financial Accounting and Accounting Standards - Review and Practice - Questions - Page 23: 23


Generally, an opportunity to propose a different GAAP should mean to alter the existing methodology other than completely altering the whole GAAP and it might take the following criteria: i. The method to be used must be efficient, expeditious and responsive. ii. The method must be free of bias and be above or segregated from pressure groups. iii. If it happens that the method does not have any legislative authority, it must command a widespread support.

Work Step by Step

Additionally to the above stated criteria, is the fact that the method must not only produce sound but also practical accounting principles or rather standards.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.