Under What Circumstances Are Departures from GAAP Permitted

question 14

Short Answer

Under what circumstances are departures from GAAP permitted?

---

Definitions:

Bylaws

The rules and regulations established by a corporation or other organization that govern its operations and management.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on the relationships among the management, board of directors, shareholders, and other stakeholders.

Double Taxation

A taxation principle where income is taxed at both the corporate level and again at the individual level on dividends received.

Partnership Agreement

A formal arrangement between two or more parties to manage and operate a business and share its profits or losses in accordance with the terms set out in the agreement.