ITALY

Comparison Between Italy And U.S With Regard To Accounting And Taxation

Comparison Between Italy And U.S With Regard To Accounting And Taxation

Introduction

Principles known as Generally Accepted Accounting Principles (GAAP) are a set of general rules and standards that guide book to develop criteria regarding the measurement of assets and economic information and economic elements of an entity. GAAP are parameters for the preparation of financial statements is based on uniform methods of accounting techniques. Accounting is a system that a real company and its business model display a monetary unit. This enables the company's financial model to analyze, compare the same with itself over time, as well as with other companies.

In order models (of financial statements data) to be comparable to records and the preparation is in compliance with certain principles, rules that ensure comparability. Such principles and prescriptions called for generally accepted accounting practices and are summarized in the International Accounting Standards.

Financial capital maintenance

According to this concept of making a profit only if the net assets of financial (or money) amount at the end is greater than the net assets of financial (or money) amount at beginning of period, not including any allocation of the owner or owners during the investment period. Financial capital maintenance can be assessed either nominal monetary units or units of constant purchasing power. Physical capital maintenance

According to this concept of making a profit only if the company's physical capacity or the ability (in such capacity to achieve the necessary resources or money) at the end is greater than the physical capacity at the beginning, not including the distribution of the owner or owners during the investment period.

Accumulation and coordination assumption

This assumption provides a number of things. First, the revenue and expenditure are taken into account when incurred (rather than when it is received or paid in cash or cash equivalents). Similarly, revenues are consistent with the izdevumiem.un according to the period to which they apply. The going concern basis

In drawing up the financial statements is generally accepted that the company is fully operational and in the near future it will continue. Thus, it is assumed that the company has neither the intention nor the need to eliminate its business or substantially reduce the volume of its operations. If this is the intention or need to, then it is possible that the financial statements prepared in accordance with other assumptions (e.g. ...