Required Departures From GAAP
Under the AICPA's Code of Professional Ethics under Rule 203 - Accounting Principles, a member must depart from GAAP if following it would lead to a material misstatement on the financial statements, or otherwise be misleading. In the departure the member must disclose, if practical, the reasons why compliance with the accounting principle would result in a misleading financial statement. Under Rule 203-1-Departures from Established Accounting Principles, the departures are rare, and usually take place when there is new legislation, the evolution of new forms of business transactions, an unusual degree of materiality, or the existence of conflicting industry practices.
Read more about this topic: Generally Accepted Accounting Principles (United States)
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“The individual woman is required ... a thousand times a day to choose either to accept her appointed role and thereby rescue her good disposition out of the wreckage of her self-respect, or else follow an independent line of behavior and rescue her self-respect out of the wreckage of her good disposition.”
—Jeannette Rankin (1880–1973)