Generally Accepted Accounting Principles

GAAP Rules, guidance, and concepts for accounting practices and the content of *financial statements. GAAP covers the Recognition, *measurement, Reporting, and *disclosure of accounting items, and it is derived from several sources: *financial reporting standards (or *accounting standards), legislation, custom, industry-specific conventions, and the pronouncements of authoritative professional and academic bodies. The importance of each of these elements varies from country to country. For example, in continental Europe legislation has tended to be the main source of GAAP. In the United States, in contrast, legislation has tended to play a less important role: U.S. GAAP derives from the * Statements of Financial Accounting Standards of the *Financial Accounting Standards Board, and the pronouncements and interpretations of professional bodies like the *American Institute of Certified Public Accountants, as well as from law, industry practice, and academic literature. The *harmonization of international GAAP started to gather significant momentum around the turn of the twenty-first century. The countries of the European Union, for example, agreed to adopt the * International Financial Reporting Standards of the international Accounting Standards Board for listed corporation GAAP by 2005.

Auditor's dictionary. 2014.

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  • generally accepted accounting principles — ( GAAP) Accounting treatments that fully conform to established rules from the American Institute of Certified Public Accountants ( AICPA). For all nongovernment entities in the United States, GAAP is primarily determined by the Financial… …   Financial and business terms

  • Generally Accepted Accounting Principles — (GAAP). The conventions, rules and procedures necessary to define accepted accounting practices at a particular time; includes both broad and specific guidelines. The source of such principles is the Financial Accounting Standards Board …   Black's law dictionary

  • Generally Accepted Accounting Principles (UK) — The Generally Accepted Accounting Practice in the UK, or UK GAAP, are the overall body of regulation establishing how company accounts must be prepared in the United Kingdom. This includes not only accounting standards, but also UK company… …   Wikipedia

  • generally accepted accounting principles — GAAP In the USA, the rules, accounting standards, and accounting concepts followed by accountants in measuring, recording, and reporting transactions. There is also a requirement to state whether financial statements conform with GAAP. In the UK… …   Accounting dictionary

  • generally accepted accounting principles — noun a collection of rules and procedures and conventions that define accepted accounting practice; includes broad guidelines as well as detailed procedures • Syn: ↑GAAP • Hypernyms: ↑collection, ↑aggregation, ↑accumulation, ↑assemblage • Member… …   Useful english dictionary

  • Generally accepted accounting principles — (GAAP)   Defined by the FASB as the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time, includes both broad guidelines and relatively detailed practices and procedures.   U.S. Dept. of Energy …   Energy terms

  • Generally Accepted Accounting Principles — (GAAP).  Accepted rules and procedures for accounting.  ► “Starting next year, all life insurers will need to comply with the same set of accounting standards if their financial statements are to be regarded as GAAP the standard used by all… …   American business jargon

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