First let me talk about the generally accepted accounting principles or GAAP and their primary function, which is to ensure that all companies are using the same methods in order to report their financial information. So financial reporting is the main part of GAAP, which involves providing accurate financial information to potential investors and creditors about the company in order for them to make good investments and other financial decisions. Also, financial reporting will help the company itself in evaluated how well they’re doing and to improve their performance in the future. GAAP relies on some assumptions and principles in order to officially report their financial information. Some examples of these assumptions would be the economic assumption that states accountants have to keep their business transactions separate from their personal transactions, monetary unit assumption that makes sure that all transactions are reported in the same currency (US dollar bills), and the time-period assumption says the economic activities in a company can be divided into time periods. There are many organizations that helped develop and influence the accounting standards of GAAP. One organization was the Securities Exchange Commission or SEC, which helped enforce the rules of GAAP and worked closely with the various organizations setting the rules GAAP such as FASB and IASB. The financial accounting standards board or FASB is the main organization that develops all of the accounting principles under GAAP.