US GAAP
The Financial Accounting Standards Board’s Accounting Standards Codification is the source of authoritative nongovernmental US GAAP, with additional requirements applicable to SEC registrants. US GAAP is distinct from IFRS Accounting Standards, and individual requirements may differ. Identify the reporting entity, jurisdiction, period and framework before applying a rule or comparing financial results.
Worked example
A US company reporting under US GAAP applies the relevant FASB Codification requirements. An entity reporting under IFRS determines its accounting under the applicable IFRS standards, even if the US treatment differs.
Common mistake
Assuming US GAAP and IFRS are identical for every transaction or calling the IASB the issuer of US GAAP.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Supporting | September 2026–June 2027 |
| ACCA | SBR | Supporting | September 2026–June 2027 |