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22 Jul 2019 The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its External parties can easily compare financial statements issued by Click here to request free information about Southern New Hampshire Beyond the 10 principles, GAAP compliance is built on three rules that 

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Accounting Equation Always true, no exceptions Owners' Equity is just a plug My asset is your liability 2. Owners' Equity However, it's likely easier to think of the Accounting Equation this way: Assets – Liabilities = Owners' Equity. GAAP is created by the Financial Accounting Standards Board (FASB). Download pdf.

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International Financial Reporting Standards (IFRS): pros and cons for investors