U.S. financial reporting requirements are based on Generally Accepted Accounting Principles (GAAP), as developed by the Financial Accounting Standards Board (FASB). There are five major “pillars” or principles of GAAP accounting: – Going Concern Assumption – Arms Length Principle – Cost Principle – Matching Principle – Realization Principle Describe the meaning of each of these principles in detail and provide examples as to how they are applied to transactions.