generally accepted accounting principles

(redirected from Accounting Principles)
Also found in: Dictionary, Thesaurus, Legal.
Related to Accounting Principles: Accounting Concepts

Generally Accepted Accounting Principles (GAAP)

The overall conventions, rules, and procedures that define accepted accounting practice at a particular time in the U.S.

Generally Accepted Accounting Principles

Rules to which accountants adhere when preparing financial statements. The Generally Accepted Accounting Principles exist to ensure that American accountants are using the same or almost the same standards so that comparison of financial statements between or within a company is easy and accurate. They also promote transparency in accounting. The GAAP are set by the FASB. See also: International Financial Reporting Standards.

generally accepted accounting principles (GAAP)

Guidelines and rules for use by accountants in preparing financial statements. These principles, which evolved over a period of years, are designed to help ensure that financial data are presented fairly and are comparable from firm to firm and from industry to industry. In expressing an opinion on financial statements, certified public accountants are required to stipulate whether their statements have been prepared according to generally accepted accounting principles.

Generally accepted accounting principles (GAAP).

Generally accepted accounting principles (GAAP), which are the basis for financial reporting by the private sector in the United States, have been codified by the Financial Accounting Standards Board (FASB) into a single authoritative source.

The codification is designed to strengthen the economic system by organizing standards from various sources into approximately 90 accounting topics and providing uniform criteria for communicating data. The code is scheduled for final adoption at the end of 2008 following a one-year verification period.

generally accepted accounting principles (GAAP)

(pronounced “gap”) Established by the Financial Accounting Standards Board (FASB), these are the guidelines for proper accounting practices.

References in periodicals archive ?
In the hierarchy of generally accepted accounting principles [GAAP], you believe that the FASB statements (such as [SFAS] 157) are ranked as being higher than the [SFAC].
communicate appropriately in the auditor's report when the comparability of financial statements between periods has been materially affected by a change in accounting principle or by adjustments to correct a material misstatement in previously issued financial statements.
* Statement of Federal Financial Accounting Standards 34, The Hierarchy of Generally Accepted Accounting Principles, Including the Application of Standards Issued by the Financial Accounting Standards Board
As part of the settlement, AIG agreed to appoint an independent consultant who will review transactions entered into between 2000 and 2004 to determine whether the transactions were used by a counterparty to violate generally accepted accounting principles or to obtain a specified accounting or reporting result.
To properly apply the language of the lease and the governing accounting principles and practices also requires interpretation and judgement.
Accounting Principles: Applying IAS is mandatory for all companies reporting to the Capital Market Authority.
As stated by the authors, Generally Accepted Accounting Principles are concerned with the measurement of economic activity--the time when such measurements are made and recorded, the disclosures surrounding these activities, and the preparation and presentation of information on the summarized economic activities in financial statements.
As a result, companies operate in countries where accounting principles differ according to local cultures and laws.
"Auditor Reporting Decisions Involving Accounting Principles Changes: Some Evidence on Materiality Thresholds," Journal of Accounting Research, 27(1), 78-96.
Chapter 1 covers generally accepted accounting principles and other accounting literature, and summarizes reporting rules of the Financial Accounting Standards Board (FASB) and the Government Accounting Standards Board (GASB).
The objective of this Statement is to incorporate the hierarchy of generally accepted accounting principles (GAAP) for state and local governments into the Governmental Accounting Standards Board's (GASB) authoritative literature.
Changes in accounting principles made in an interim period or at the end of the fiscal year are applied to all interim periods of the year of change.