GAAP are usually developed through professional accounting bodies as American Institute of Certified Public Accountants (AICPA) and ICAI that is Institute of Chartered Accountants of India. In developing these principles, conversely, the accounting profession has to reflect the actualities of social, economic, political and legal environment wherein it operates. Along academic research, regulatory and tax laws of the government, for illustration: Companies Act, 1956, income Tax Act, 1961, and so on, in a large measure, affect the formulation of suitable accounting principles. Stock exchanges and the other regulatory agencies as SEBI that is the Securities and Exchange Board of India have laid down rules for disclosure and the extent of accounting information.
As the environment, wherein business operates, undergoes constant changes like an outcomes of variations in economic and financial policies of the Government and variations in the structure of business, continued estimation of the relevance of generally accepted accounting principles is needed. It means that the principles of accounting are not ever-lasting truths. You will understand that this is the development of applicable accounting principles in tune along with the present day requires of the society which would make it suitable for the business enterprises to develop financial statements that would be adequate and of value to the end users.
Currently, we give you a brief account of the development of standards in (UK) the United Kingdom, (USA) the United States of America, India and the other countries.