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Lady Godiva Accounting Principles (LGAP)

What is 'Lady Godiva Accounting Principles - LGAP'

A theoretical set of accounting principles under which corporations would have to fully disclose all information, including that which often doesn't get reported to investors under generally accepted accounting principles (GAAP).

These principles include disclosure of the following:
-all off-balance sheet items
-how new goodwill accounting rules (introduced in 2002) impact earnings per share (EPS)
-the impact on EPS of stock options issued in lieu of salaries
-how pension expenses are accounted for

Explaining 'Lady Godiva Accounting Principles - LGAP'

This buzzword was coined by financial analyst Rick Wayman after the Enron bankruptcy.

According to legend, Lady Godiva was a woman who rode a horse naked through Coventry, England, in the 11th century in order to get her husband, the Lord of Coventry, to lift the heavy taxes on his people. The idea of LGAP is that just as the Lady provided "full disclosure" to help her fellow citizens, corporations must do the same thing with their financial disclosures to maintain their credibility with investors.


Further Reading


Engagement of scientific community and transparency in C accounting: the Brazilian case for anthropogenic greenhouse gas emissions from land use, land-use …
iopscience.iop.org [PDF]
… Donoghue , D. ( 2003 ), Lady Godiva: A Literary History of the Legend , Oxford … vivos; gifts tax; Gini coefficient; Gladstone, WE (1809–98); globalisation; Godiva; … depreciation; acceptable seal; accessions tax; accountant; accounting; accounting period; accounting standards; accretion …

CORPORATE GOVERNANCE: THE INDIAN PERSPECTIVECORPORATE GOVERNANCE: THE INDIAN PERSPECTIVE
search.proquest.com [PDF]
… Donoghue , D. ( 2003 ), Lady Godiva: A Literary History of the Legend , Oxford … vivos; gifts tax; Gini coefficient; Gladstone, WE (1809–98); globalisation; Godiva; … depreciation; acceptable seal; accessions tax; accountant; accounting; accounting period; accounting standards; accretion …

Revealing Tax Avoidance in the Family-owned Company: Ethnomethodology StudyRevealing Tax Avoidance in the Family-owned Company: Ethnomethodology Study
www.ijabs.ub.ac.id [PDF]
… Donoghue , D. ( 2003 ), Lady Godiva: A Literary History of the Legend , Oxford … vivos; gifts tax; Gini coefficient; Gladstone, WE (1809–98); globalisation; Godiva; … depreciation; acceptable seal; accessions tax; accountant; accounting; accounting period; accounting standards; accretion …



Q&A About Lady Godiva Accounting Principles (LGAP)


How did the term "Lady Godiva" come about?

The term was coined by financial analyst Rick Wayman after the Enron bankruptcy.

Why is full disclosure important in terms of corporate accountability and credibility with investors?

Full disclosure helps maintain credibility with investors and allows them to make better decisions about their investments.

What is Lady Godiva Accounting Principles?

Lady Godiva Accounting Principles (LGAP) are a theoretical set of accounting principles under which corporations would have to fully disclose all information, including that which often doesn't get reported to investors under generally accepted accounting principles.

What does the buzzword "Lady Godiva" mean in terms of accounting?

It means full disclosure of all information, including that which often doesn't get reported to investors under generally accepted accounting principles.

What does LGAP stand for?

LGAP stands for Lady Godiva Accounting Principles.