It has to possess the predicting value ("the property of information helping users to increase probability of implementation of forecasts" 2 in order that the user could use it in adoption of investment decisions. It also has to provide feedback — not only forecasting, but also confirmation and updating of the previous forecasts. And, at last, it has to be timely to keep the usefulness.
Only SEC possesses the power to force firms, and only participants of securities market, to observance of certain rules of providing financial statements. Plus some resolutions IRS in the order of registration of the reporting also are obligatory. Rules which observance is demanded by SEC are defined not only and not so much by SEC, how many the private organizations. The concept GAAP is applied to these rules in narrow sense. For the purpose of definition of what rules and methods are supported by SEC the interesting concept - sufficient authoritative support was entered into practice. All firms presenting the reporting to SEC have to use the techniques and the principles having sufficient authoritative support. Respectively, a certain circle of the organizations was allocated, decisions and public statements were such support. The methods which are not described in public materials of these organizations or contradicting them appeared not having authoritative podderzhki.14
Comparability is a property of data representation form which increases its usefulness at the expense of possibility of comparison it with similar indicators or data. A limit form of comparability is uniformity (uniformity) when firms provide information not simply in comparable, and in absolutely monotonous format. The requirement of uniformity can be applied and to account methods, but for the American system it, generally speaking, is not characteristic.
However it is only the top part of an iceberg. Besides the documents having official character, the same FASB and its divisions publish two more types of documents which GAAP can be a source: interpretations (FASB Interpretations) and technical bulletins (FASB Technical Bulletins). They are supported by authority of FASB and usually simply precede any decisions of council silt explain them. Also AICPA publishes a number of the documents which are all members, i.e. all jury accountants (CPA), obligatory for observance. In addition other accounting associations (AAA, NAA) publish documents which make the contribution if not in widespread (promulgated) the registration principles then create part of the environment of existence of these principles.
Information has to promote decision-making by the user, i.e. "to be related or useful application to actions for which it intended".21 Relevance of information is result of a combination of three of its characteristics: predictive value (Predictive value), property of feedback (Feed-back) and timeliness (Timeliness).
The American system developed rather long time in the conditions of competitive capitalist economy. Respectively, the concept of the financial account grew from the intra firm account at small enterprises, there at their transformation into large joint-stock companies. At their development there was no uniform concept of the account. Thus development went gradually and all concepts were developed in process of emergence of need for them. So happened, for example, to concept of depreciation which entered a circle of concepts of accountants and businessmen only with the advent of large capital constructions, such as the railroads when there was a problem of distribution of their cost for time during which they are used.
The main distinction can be marked out in that, on what the main attention of the defining is paid. In the first case, the account is the process leading to result (financial statements) which correct representation is the account purpose. The basic is not process, namely result. In the second case the account is considered as system in which all its components are equivalent, and the purpose of system is defined separately.
Development of the Conceptual basis (Conceptual framework) of the financial account in which the fundamental principles of accounting were as far as possible integrated and unified is connected with emergence of FASB. The provision (Statements) of FASB, based on the Conceptual basis, form a basis of that is considered the basic principles of the financial account today in the USA which will be considered further.