Tuesday, September 3, 2013

Adam Greene: GAAP Compliance

A partner at Greene & Company, LLP, in Melville, NY, Adam Greene is a Certified Public Accountant (CPA) who provides clients, such as those in the construction industry, with a myriad of offerings related to accounting. Along with individual and corporate tax services, Greene advises on estate planning, business succession planning, and financial projections. Furthermore, he produces documentation that complies with generally accepted accounting principles (GAAP).

GAAP promotes consistency among accountants and accountancy practices and sets standards for the creation of financial statements. Although not required by law, adopting GAAP increases the integrity of subscribing businesses. Creditors, investors, and shareholders may look more favorably on companies that follow these unofficial rules because it shows their commitment to honesty and enhances outsiders’ understanding of each firm’s health.

The main mission of GAAP is for businesses to accurately present their financial status. Among its tenets are “continuing concern,” where companies report on the assumption that they will continue to exist; “conservatism,” where statements feature logical estimates; and “objectivity,” where preparers use only quantitative data. Additionally, the Financial Accounting Standards Board, the United States' top organization for establishing private sector accounting policies, applies these guidelines.

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