SAP and GAAP Perspectives on Financial Measurements

B

The statement in the question is not entirely accurate, and therefore the correct answer is B: False.

SAP (Statement of Auditing Practice) is a set of auditing guidelines and procedures issued by the Institute of Chartered Accountants in England and Wales (ICAEW), which provides guidance on how auditors should conduct their work.

GAAP (Generally Accepted Accounting Principles) is a set of accounting standards that are used to prepare and present financial statements for businesses. GAAP is developed by the Financial Accounting Standards Board (FASB) in the United States.

While both SAP and GAAP provide guidance on financial reporting, they focus on different aspects of accounting. SAP provides guidance on auditing, while GAAP provides guidance on financial accounting.

Regarding the specific points mentioned in the statement, neither SAP nor GAAP stress the measurement of emerging earnings of a business from period to period. Instead, they both require the accurate reporting of financial information in accordance with the relevant accounting standards.

SAP does require the auditor to consider the business's ability to continue as a going concern, which may include assessing the ability to pay claims in the future. However, this is not the primary focus of SAP.

Similarly, GAAP requires the measurement and disclosure of future obligations and potential claims, but this is not the only focus of GAAP. GAAP also requires the accurate reporting of current financial performance, including the measurement of earnings from period to period.

In summary, the statement in the question is not accurate. While both SAP and GAAP provide guidance on financial reporting, they focus on different aspects of accounting and do not have a specific emphasis on the measurement of emerging earnings or the ability to pay claims in the future.