French GAAP Definition & Standards.

In order to ensure clear and accurate accounting monitoring for all companies, there are different accounting rules to be followed. At international as well as at national level, several standards are imposed on companies to ensure a common and transparent accounting framework. Compliance with these rules is essential to facilitate transactions on the markets and to be aware of the financial situation of companies.

In order to help you comply with these different rules, DeftHedge has developed a SaaS solution that is perfectly adapted to companies’ accounting management. Thanks to our tool you will be able to improve the management of your accounts and comply with the various international and national accounting rules. In order to understand what French GAAP means, we return here in detail to this accounting regulation.

What is French GAAP ?

At the European and international level (in more than 160 jurisdictions), IFRS provide a common and harmonised accounting framework for all listed companies. At the national level, French GAAP (Generally Accepted Accounting Principles), also known as PCG (Plan Comptable Général), applies.

Drawn up by the Autorité des Normes Comptables (ANC), this regulation creates an accounting framework that all companies domiciled in France must comply with.

This framework is made up of several elements: financial accounts, balance sheets, income statements, reports, etc. Defined by ANC Regulation no. 2014-03, the General Accounting Plan is a framework that all companies must comply with in order to simplify control and the comparison of accounts between companies.

Listed companies must comply with French GAAP and international accounting standards.

What is the operating principle of French GAAP ?

French GAAP provides a clear and precise accounting framework that all companies domiciled in France must follow. The operation of this chart of accounts meets several objectives:

It takes up the principles and use of accounting
Defines accounting concepts: balance sheet, liabilities and assets, revenues, income statement, summary documents, recognition and measurement rules, etc.
Specifies the framework and the various rules for keeping accounts
Informs about special accounting rules

Taking French GAAP into account and complying with the various standards imposed by these accounting regulations is necessary for the day-to-day business of companies.

How is French GAAP different from US GAAP ?

What is US GAAP ?

US GAAP corresponds to the accounting system in force in the United States and applies to all listed companies. Created in 1973 by the FASB, there are currently 130 US GAAP standards. In order to be listed on the markets, companies must therefore comply with these rules so as to provide the best possible information on their financial situation.

This transparency is also required for companies wishing to raise capital from the public. Like IFRS, US GAAP therefore aims to create a clear accounting framework common to all listed companies.

This clarification of companies’ accounts and financial performance ensures accurate information for market transactions and investments.

What is the difference between French GAAP and US GAAP ?

Although there are similarities between the two regulations, it is necessary to point out the few differences between them. The main difference between French GAAP and US GAAP lies in the very essence of these rules, linked in particular to American economic liberalism.

Indeed, in France, this accounting plan applied to companies aims to create a true legal framework that imposes compliant and transparent financial management. The final objective is to meet the demands for guarantees from administrations, creditors, investors and employees.

On the other side of the Atlantic, accounting rules are imposed on listed companies with a different objective. Indeed, the main objective of US GAAP is to provide investors and shareholders with the best possible information on the financial condition of companies.

US GAAP is therefore not intended to include the legislator in this regulation.

What are the advantages of DeftHedge for the consideration of French GAAP ?

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In order to comply with the accounting rules, appropriate measures should therefore be taken. DeftHedge is a perfectly adapted tool to help you in your day-to-day management to comply with French GAAP standards.

Thanks to the numerous functionalities of our software, you will be able to guarantee accounts in compliance with both French and international rules.

This compliance is essential to carry out all your buying and selling operations on the financial markets. For optimised financial and accounting management, our SaaS solution provides you with several functionalities:

Currency management and monitoring
Automation of time-consuming daily tasks
Development and refinement of financial strategies
Data centralisation and security
Optimisation of market transactions

DeftHedge will be a real ally in helping you to take French GAAP into account in your accounting. With the assurance that financial standards are respected, you will be able to carry out all your transactions on the financial markets more easily and serenely.

Thanks to the various services and functionalities offered by our financial forecasting software, you will have access to multiple tools to optimise your market strategy and reduce your losses.

For a quick start and to customise the various functionalities of the software, the DeftHedge teams are at your disposal to give you all the right advice. On a daily basis, DeftHedge will quickly become an essential tool that will help you in many tasks.

DeftHedge thus ensures speed and compliance in all your daily accounting and financial operations. To optimise your market positioning and considerably reduce all your financial losses, do not hesitate to opt for our software specially designed for companies and their needs.