What is the primary purpose of US GAAP?
In the US, the Securities and Exchange Commission ("SEC") authorizes the Financial
Accounting Standards Board ("FASB") to determine the set of accounting rules
followed by publicly traded companies.
Under FASB, financial statements are required to be prepared in accordance with US
Generally Accepted Accounting Principles ("US GAAP").
Through the standardization of financial reporting and ensuring all financials are
presented on a fair, consistent basis – the interests of investors and lenders are
protected.
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