GAAP

[DaveC49]

Hi Keith,

I think Gnucash generally provides the facilities to allow a user to conform
with particular standards like the US GAAP and the international standards
set by the IASB for example, but it does not force a user to conform
necessarily.  In part that is probably because it is used in many
jurisdictions around the world. Many countries have adopted the IASB
standards, usually modified to suit their own legislative framework but
legislation differences make strict conformance problematical. I believe
that is not the case in the US specifically but there is a general agreement
between the US GAAP and the GAAP in the IASB standards and the convergence
process in operation since 2010 is decreasing the differences.
. 
That said a lot of the core internals ( implementation of the accounting
equation, assets, liability, equity, default accounts setups, double entry
transaction recording, business procedures,  etc) do or can be setup to
conform to GAAP principles. 

Many of the GAAP principles relate more to the way in which accounting
software is used, e.g. general concepts like entity, accounting period, cost
principles, matching principle, profit recognition principle (cash or
accrual basis for example), prudence, going concern principle, rather than
the software implementation per se. All of Gnucash's reports are
customizable (although there is a learning curve involved to do that) to
conform with the requirements in particular jurisdictions.

David



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