Generally Accepted Accounting Principles

Definitions

Accounting

  • plural noun a summary of best practice in respect of the form and content of financial statements and auditor’s reports, and of accounting policies and disclosures adopted for the preparation of financial information. GAAP does not have any statutory or regulatory authority in the United Kingdom, unlike in a number of other countries where the term is in use, such as the United States, Canada.

Economics

  • The accounting principles set by the Financial Accounting Standards Board and required for use by United States companies. Contrasts with International Financial Reporting Standards used in Europe and other countries.
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