Overview
As an accountant, you will need to become familiar with generally accepted accounting principles (GAAP), as they standardize procedures used in accounting industries. At its core, GAAPs goal is to provide consistent information on organizations financial statements. In financial reporting, understanding the historical cost and consistency principles allows for cohesiveness among financial statements.
This journal will support your work on your project as you consider how GAAP standards impact reporting.
Directions
Write a journal reflecting on the historical cost and consistency GAAP standards.
Specifically, you must address the following rubric criteria:
- Describe the purpose of the historical cost principle in GAAP within financial reporting.
- Describe the purpose of the consistency principle in GAAP within financial reporting.
- Explain how the historical cost and consistency principles allow stakeholders to make decisions when reading financial statements.
What to Submit
Submit your journal as a 1- to 2-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.
AI Usage
If you use gen AI tools to support your work on this assignment, be sure to follow . You must acknowledge your use of these tools in your work. Guidelines on how to cite AI tools can be found in .
Module Five Journal Rubric
| Criteria | Exceeds Expectations (100%) | Meets Expectations (90%) | Partially Meets Expectations (70%) | Does Not Meet Expectations (0%) | Value |
|---|---|---|---|---|---|
| Purpose of the Historical Cost Principle in GAAP | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Describes the purpose of the historical cost principle in GAAP within financial reporting | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to describing the purpose of the historical cost principle in GAAP within financial reporting | Does not attempt criterion | 30 |
| Purpose of the Consistency Principle in GAAP | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Describes the purpose of the consistency principle in GAAP within financial reporting | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to describing the purpose of the consistency principle in GAAP within financial reporting | Does not attempt criterion | 30 |
| Explain | Exceeds expectations in an exceptionally clear, insightful, or sophisticated manner | Explains how the historical cost and consistency principles allow stakeholders to make decisions when reading financial statements | Shows progress toward meeting expectations, but with errors or omissions; areas for improvement may include adding details related to explaining how the historical cost and consistency principles allow stakeholders to make decisions when reading financial statements | Does not attempt criterion | 30 |
| Clear Communication | Exceeds expectations with an intentional use of language that promotes a thorough understanding | Consistently and effectively communicates in an organized way to a specific audience | Shows progress toward meeting expectations, but communication is inconsistent or ineffective in a way that negatively impacts understanding | Shows no evidence of consistent, effective, or organized communication | 5 |
| Citations and Attributions | Uses citations for ideas requiring attribution, with few or no minor errors | Uses citations for ideas requiring attribution, with consistent minor errors | Uses citations for ideas requiring attribution, with major errors | Does not use citations for ideas requiring attribution | 5 |
| Total: | 100% | ||||
