generally accepted accounting principles

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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 ?
the newly adopted accounting principle is in accordance with the applicable financial reporting framework,
This Statement requires that retrospective application of a change in accounting principle be limited to the direct effects of the change.
The new NPO audit and accounting guide supersedes three NPO guides issued by the AICPA: Audits of Colleges and Universities (including Statement of Position 74-8, Financial Accounting and Reporting by Colleges and Universities), Audits of Voluntary Health and Welfare Organizations and Audits of Certain Nonprofit Organizations (including SOP 78-10, Accounting Principles and Reporting Practices for Certain Nonprofit Organizations).
It is important to remember that auditors and controllers know a lot more about accounting principles than most audit committee members.
Auditors may find it much easier to identify better accounting principles, more appropriate estimates and more informative disclosures--compared with what the client is currently using--than to reach the conclusion that a single approach is most appropriate.
The related interpretation, "The Auditor's Consideration of Management's Adoption of Accounting Principles for New Transactions or Events," has also been deleted.
Retain and Affirm Current Accounting Principles, including the FAS 5 Approach to the Determination of Contingent Tax Liabilities
To properly apply the language of the lease and the governing accounting principles and practices also requires interpretation and judgement.
Subject to paragraph (a) of this section, banking institutions shall account for fees on international loans in accordance with generally accepted accepted accounting principles.
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.
Under the Emerging Issues Task Force announcement (EITF D-54), generally accepted accounting principles will allow the purchaser of an insurance enterprise to account for an adverse-development cover as prospective reinsurance under certain conditions.
Some commercially available computerized accounting systems can prepare reports based on different sets of accounting principles and in different currencies.

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