USA Accounting principles


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Hi, I am doing a little research and I was wondering how US GAAPs are applicable in each US country.

By that I mean in Europe, for example, each country has own accounting law that requires following rules about how to book and depreciate assets, how to book financial and operating leasing, how to book provisions, etc. etc... Basically the opposite of what IFRS with general principles is trying to do and to unify the financial statements.

So what is the situation in the USA? Do countries follow basic principles so it leads all of them to use the same method for depreciation for example, or do they have own rules and laws?

Thank you
 
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AGH the CPA

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In the US, we don't have countries. We are a grouping of states (and some territories) As such, all have to follow GAAP.
 

bklynboy

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US all follow GAAP if publicly traded and some privates but there are options that can be different by company (such as deprecaition and other policies permitted under the rules)
 
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Thank you for your answers. :)

So one more question - what is the most common accounting software in the USA?

I see that customization per company is normal, I am wondering if all states´ accounting requirements can be covered by one accounting software (excluding taxes).

Thank you.
 
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bklynboy

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Dont know most common as depends on size, complexity, cost and other factors each company weighs. At my firm we use SAP for GL but have downstream systems to handle customer data, AR/AP, travel, Payroll, Banking, Investments, etc. SO there is no one system and in fact we use some thing like 15 as subledgers for detailed processing and consolidate in the SAP GL.
 

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