Distinguish Between Indian GAAP (Generally Accepted Accounting Principle) & US GAAP?

Answer 1

US GAAP is the way accounting is done at firms like Enron and Arthur Anderson, and is usually followed by jail time.

Answer 2

GAAP originaly was the standard of FASB, Federal Accounting Standard Board of US. GAAP is Generaly accepted accounting Practices. Later on under globalization culture an Internation Accounting standard board was created under the patronage of Stanford Business community headed by a former Federal Reserve Chairman operating from UK. They were trying to homogenise international accounting practices and it is probably there brainchild this new GAAP and the American GAAP assmued the name AGAAP. Non American GAAPS are like reading tea leaves that malfiesence is difficult to decipher so they can cheat without getting caught. If they followed the same regulatory framework for American companies then all the comapnies outside US would have fell into the same situation of Enron and Anderson.