The term GAAP refers to what are known as "Generally Accepted
             Accounting Principles." According to the WSCPA, there are different types
             of GAAP, including a "GAAP for governmental entities, not-for-profit
             entities, and for profit entities." The organization with primary
             responsibility for issuing GAAP today is the Financial Accounting Standards
             Board while its predecessor was called the Accounting Principles Board.
             (WSCPA Website, "The World According to GAAP," 2004) In contrast, income
             tax accounting principles are decided upon based upon the rules of the IRS
             or the country where the income tax is being reported by the entity.
             "Publicly held companies and certain regulated companies are required
             by law to use GAAP. Although there is no such requirement for most small
             companies, practical considerations typically dictate a need to follow GAAP
             when preparing their financial statements." (WSCPA Website, "The World
             According to GAAP," 2004) However, for income tax accounting, financial
             statements prepared for income tax purposes often differ significantly from
             In reporting to shareholders, for instance, most large, publicly held
             corporations must use GAAP in terms of reporting profits and losses.
             However, the amount of income a company reports for tax purposes in any
             year may be smaller than, equal to, or greater than its GAAP-based income.
             The objectives of measuring income for general financial reporting and for
             income tax reporting are different. For example, in terms of depreciation,
             "the Financial Accounting Standards Board has said that the basic purpose
             of general financial reporting is to provide information that is useful to
             those who make economic decisions about business enterprises (Concept
             Statement No. 1, par. 16 cited on WSCPA Website, "The World According to
             GAAP," 2004). So if machinery used in production has depreciated, and must
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