generally accepted accounting principles

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Related to accounting standard: International Accounting Standard

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 ?
Publicly traded companies in the European Union are bracing for the implementation of the International Financial Reporting Standard--set to replace the various country-based accounting standards among the EU member states on Jan.
At a joint meeting in September 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) entered into a memorandum of understanding (www.
The challenge for us is to understand the different type of issuance or a different concentration of the business," she says, "and then explain which aspects of accounting standards will have an impact.
The seasoning and promulgation of a strong body of international accounting standards will come only with strong corporate participation.
The AICPA said FASAB's new authority means that, for the first time, the federal government will be able to report its financial position according to accounting standards widely recognized by CPAs.
I don't mean] crystal-ball gazing 5 or 10 years into the future, but more [in terms of] what issues are coming up, both around our existing rules in terms of new business structures and arrangements, and what kinds of questions do they raise for accounting and accounting standard setting?
FASB does not believe the International Accounting Standards Committee (IASC) is ready to issue accounting standards that will be accepted worldwide.
If you read this page regularly, you know I strongly support the concept of improved global accounting standards.
Under the managerial cost accounting standard, the requirement for full cost reporting by business lines or segments and related segment outputs also introduced wrinkles such as assigning common costs to agency programs and introducing full cost practices into agency activities.
Sir David Tweedie, IASB chairman, said: "The widespread use of share options to pay employees, external advisors and others; the calls from users of financial statements for improvements in accounting for these transactions; and the differing proposals emanating from national standard-setters demonstrate the importance of developing a high-quality global accounting standard on share-based payment.
The jostling about accounting standards for private companies continued last month as the Financial Accounting Foundation (FAF), the overseer of U.
As he begins his second five-year term as Chairman of the International Accounting Standards Board (IASB), Sir David Tweedie spoke about his first term and his expectations going forward.

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