In preparing general-purpose financial statements, there are guidelines and principles that are understood by both the accountants who prepare them and the users of such reports are followed. These are set forth in the GAAP and IFRS.
Generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) were actually based on fundamental accounting principles and concepts.
This chapter covers the fundamental concepts to help you build a good foundation before moving to more elaborate topics.
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