standard-setters include such as the American Institute of Public Accountants (AICPA) and the Securities and Exchange Commission (SEC), the American Institute of Public Accountants (AICPA), and the Public Company Accounting Oversight Board also provide specific accounting guidance on select issues. Since 2009, FASB maintains the FASB Accounting Standards Codification (Accounting Standards Codification) which represents the source of authoritative standards of accounting and reporting, other than those issued by the SEC, to be applied by nongovernmental entities. The primary standard-setter for financial accounting is the Financial Accounting Standards Board (FASB), whose goal is to establish and improve standards of financial accounting and reporting for nongovernmental entities. Thus, to properly interpret financial statements, financial statement users and their advisors must understand the principles and the choices companies may make in applying the principles. To ensure that companies provide reliable information, standard setters established numerous principles for financial accounting, although companies have significant discretion in how they apply many of these principles. For the financial and credit markets to operate effectively, companies must provide reliable information about their financial results and conditions to external parties, such as existing and potential shareholders, existing and potential creditors, and governmental agencies. generally accepted accounting principles (GAAP). Bloomberg Tax Portfolio 5116, Accounting Principles and Financial Statements (Accounting Policy and Practice Series), explains the basic concepts underlying financial accounting and the elements of financial statements prepared under U.S.

Accounting principles