Generally Accepted Accounting Principles Essay Example | Topics and Well Written Essays - 500 words

Gener whollyy Accepted Accounting Principles - Essay ExampleThe prep of financial statements and accounts in accordance with the GAAP helps the capital markets to operate efficiently (Everingham,Kleynhans andPosthumus, 2007).Fidelity enthronements Company is a well known mutual fund that offers portfolio of investments to their clients. The portfolio solutions be provided by the Fidelity Investments Company by selecting painss of companies listed in the New York Stock Exchange as well as in other stock exchanges in the worldwide markets. For this, the company invests billions of dollars in various stocks listed in the well known stock exchanges. The investments in these companies by Fidelity Investment Company are done after analysis of the risk and return on investments by their analysts. Thus the Fidelity Investment Analysts undertake analysis of the financial statements of the companies listed in various stock exchanges including New York for formation of the investment portfo lio. As the accounting standards in different countries are different and are influenced by a several factors like the capital market environment, financial reporting requirements, form of transaction ownerships, corporate culture, etc it is important for the Fidelity Investment Analysts that the accounting and financial information presented in the consolidated statements of the elect companies adhere to the accounting standards as mentioned in GAAP. The preparation of financial statements of companies according to GAAP and audited by main(a) and certified public accountants guarantees true and fair financial information of the companies that are comparable across all jurisdictions. This is important for the Fidelity Investment Analysts as they would able to compare the projected financials of the company in the internationalistic context and calculate the risk and return of the portfolio of investments in an accurate manner (Gibson, 2010). This would enhance the abilities of Fi delity Investment Company in maximizing the