generally accepted accounting principles (GAAP)
Definition
Authoritative rules, practices, and conventions meant to provide both broad guidelines and detailed procedures for preparing financial statements and handling specific accounting situations. They provide objective standards for judging and comparing financial data and its presentation, and limit the directors' freedom in showing an unrealistic picture through creative accounting. An auditor must certify that the provisions of GAAP have been followed in reporting an organization's financial data in order it to be accepted by investors, lenders, and tax authorities. Most large countries (Canada, India, Japan, UK, US, etc.) have their own GAAP which may differ from those of others in minor or major details. See also accounting concepts.
generally accepted accounting principles (GAAP) is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
generally accepted accounting principles (GAAP) appears in the definitions of the following terms:
regulatory capital,
Generally Recognized Accounting Practice (GRAP),
review,
accrual basis accounting,
accounting principles board,
qualified auditor,
inventory,
lower of cost or market value,
International Financial Reporting Standards (IFRS),
International Accounting Standards (IAS)
and
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