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Related to GAAP: Non-GAAP, Sarbanes Oxley


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).

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.

GAAP (Generally Accepted Accounting Principles)



(pronounced “gap”) Generally accepted accounting principles declared by the Financial Accounting Standards Board (FASB).

References in periodicals archive ?
* GAAP diluted EPS was $0.05, non-GAAP diluted EPS was $0.39
Total company GAAP revenue for the first quarter of fiscal 2020 was $247 million, up 16% year-over-year.
GAAP net income available to common shareholders was $11.8 million for fiscal year 2019, or $0.38 per diluted share, compared to net loss of ($2.7) million, or ($0.09) per diluted share for fiscal year 2018.
A reconciliation of our GAAP net income (loss) and GAAP earnings (loss) per share for Q2 2019 to our non-GAAP net income (loss) and earnings (loss) per share is provided below, together with corresponding reconciliations for the three month period ended June 30, 2019.
For the full year 2019, the company expects GAAP earnings per share from continuing operations in a range of USD2.61 to USD2.66 .
In May 2016, the SEC issued interpretive guidance on non-GAAP financial measures that provided clarifying examples on presentation of these measures that is either misleading or gives them greater prominence than comparable GAAP measures.
GAAP net loss for fiscal 2018 was $11.0 million, or ($0.22) per diluted share, compared to a loss of $40.0 million, or ($0.75) per diluted share, for fiscal 2017.
For example, applying a 20.Ox price earnings multiple to an adjusted EPS number of $3.00 per share would support a stock price expectation of $60.00; applying that same multiple to a GAAP EPS figure of $2.50 would support a stock price expectation of $50.00.
If managers can meet their strategic objectives based on neutral reporting of solid operating performance, then they have no need to manage GAAP earnings or report non-GAAP earnings to alter stakeholder perceptions.
Non-GAAP financial measures do not include operating or other statistics that are not financial in nature or measures that are based on GAAP information.
GAAP total revenue was $910.1 million for the quarter ended September 30, 2010.
Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. A complete reconciliation of GAAP to non-GAAP results is attached to this press release.