Fidelity Investments Company is a well-known mutual fund investment company that uses Generally accepted accounting principles.
It makes investments worth billions of dollars in companies listed on the New York Stock Exchange and other stock markets.
(GAAP) are very important for Fidelity’s investment analysts.
What are Generally Accepted Accounting Principles?
(GAAP) refer to a common set of accounting principles, standards and procedures that companies must follow when they compile their financial statements.
GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information.
GAAP improves the clarity of the communication of financial information.
Why are financial statements that have been prepared in accordance with GAAP and audited by an independent CPA useful for Fidelity’s investment analysts?
What organizations influence GAAP? Explain how they do so.
