Baby GAAP, A Creditor's Solution to Financial Reporting

Author

Ryan P. Irish, Claremont McKenna CollegeFollow

Graduation Year

Spring 2013

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics-Accounting

Reader 1

Douglas McEachern

Terms of Use & License Information

Terms of Use for work posted in Scholarship@Claremont.

Rights Information

© 2013 Ryan P. Irish

Abstract

The purpose of this paper is to explore problems in current GAAP, including earnings management and illogical accounting practices. The paper then looks at proposed solutions to these problems, but shows how, from a creditor's perspective, these solutions fall short. My conclusion is that by creating two sets of GAAP, one for large publicly traded companies and one for smaller privately held companies, financial statements will be more representationally faithful for the creditors utilizing the financial statements.

Comments

Thank you to Professor McEachern and Professor Batta.

Recommended Citation

Irish, Ryan P., "Baby GAAP, A Creditor's Solution to Financial Reporting" (2013). CMC Senior Theses. 626.
https://scholarship.claremont.edu/cmc_theses/626