Hierarchy Of GAAP


DEFINITION of 'Hierarchy Of GAAP'

An outline for determining the most appropriate sources for obtaining guidance on U.S. generally accepted accounting principles. The applicable hierarchy of GAAP that applies to nongovernmental entities is laid out by the Financial Accounting Standards Board (FASB) Statement 162, issued in May 2008.


At the top of the GAAP hierarchy are FASB statements and American Institute of Certified Public Accountants' (AICPA) opinions. At the bottom are FASB staff questions and answers and AICPA interpretations. Accountants are directed that they should first consult sources at the top of the hierarchy and then proceed downward only if there is no relevant pronouncement at a higher level.

  1. Other Comprehensive Basis of Accounting ...

    Financial statements prepared using a system of accounting that ...
  2. Non-GAAP Earnings

    An alternative earnings measure of the performance of a company. ...
  3. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  4. International Accounting Standards ...

    An older set of standards stating how particular types of transactions ...
  5. Certified Public Accountant - CPA

    A designation given by the American Institute of Certified Public ...
  6. Generally Accepted Auditing Standards ...

    A set of systematic guidelines used by auditors when conducting ...
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  1. How is accounting in the United States different from international accounting?

    Despite major efforts by the Financial Accounting Standards Board, or FASB, and the International Accounting Standards Board, ... Read Full Answer >>
  2. What are the generally accepted accounting principles for inventory reserves?

    As with most matters related to generally accepted accounting principles (GAAP), accountants assigned with the task of applying ... Read Full Answer >>
  3. What is the difference between IAS and GAAP?

    To answer this question, we must first define what IAS and GAAP are, in order to get a better grasp of the function they ... Read Full Answer >>
  4. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  5. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>
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    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>

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