Answer
They consist of accounting practices, procedures, theories, concepts, and methods which are recognized by a large majority of practicing accountants as well as other members of the business and financial community. Bulletins issued by the Committee on Accounting Procedure, opinions rendered by the Accounting Principles Board, and statements issued by the Financial Accounting Standards Board constitute “substantial authoritative support.”
Work Step by Step
The explanation should note that generally accepted accounting principles or standards have “substantial authoritative support” because the standards have global recognition.
