Generally Accepted Accounting Principles - GAAP

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Dictionary Says

Definition of 'Generally Accepted Accounting Principles - GAAP'

The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information.
Investopedia Says

Investopedia explains 'Generally Accepted Accounting Principles - GAAP'

GAAP are imposed on companies so that investors have a minimum level of consistency in the financial statements they use when analyzing companies for investment purposes. GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements. Companies are expected to follow GAAP rules when reporting their financial data via financial statements. If a financial statement is not prepared using GAAP principles, be very wary!

That said, keep in mind that GAAP is only a set of standards. There is plenty of room within GAAP for unscrupulous accountants to distort figures. So, even when a company uses GAAP, you still need to scrutinize its financial statements.
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'Generally Accepted Accounting Principles (GAAP)'

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    As with most matters related to generally accepted accounting principles (GAAP),
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  • GAAP

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    ... Read More »; GAAP. Learn more about the generally accepted accounting principles,
    standards and ... Read More »; Calculating Operating Margin. ...

  • Accounting Basics: Financial Reporting | Investopedia

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    ... By Bob Schneider Generally Accepted Accounting Principles (GAAP) A key prerequisite
    for meaningful financial statements is that they be comparable to those for ...

  • What is the difference between IAS and GAAP?

    http://www.investopedia.com/ask/answers/05/iasvsgaap.asp
    ... The acronym "GAAP" stands for Generally Accepted Accounting Principles. The IASC
    does not set GAAP, nor does it have any legal authority over GAAP. ...

  • What is the difference between principles-based accounting and ...

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    ... Principles-based accounting such as generally accepted accounting principles
    (GAAP) is used as a conceptual basis for accountants. ...

  • Financial Statements: Who's In Charge? | Investopedia

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    ... Generally Accepted Accounting Principles (GAAP) GAAP starts with a conceptual framework
    that anchors financial reports to a set of principles such as ...

  • Detecting Accounting Manipulation

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    ... one-time charges" and "investment gains." SEE: Strategies For Quarterly Earnings
    Season Some Background on GAAP Generally Accepted Accounting Principles is a ...

  • What are some of the key differences between IFRS and US GAAP?

    http://www.investopedia.com/ask/answers/09/IFRS-GAAP.asp
    ... IFRS) - the accounting standard used in more than 110 countries - has some key
    differences from the US Generally Accepted Accounting Principles (GAAP). ...

  • International Reporting Standards Gain Global Recognition

    http://www.investopedia.com/articles/financialcareers/08/international-accounting-standards.asp
    ... the use of IFRS by both US-based and overseas companies alike, either in conjunction
    with or instead of US generally accepted accounting principles (GAAP). ...

  • The One-Time Expense Warning

    http://www.investopedia.com/articles/stocks/07/income_warnings.asp
    ... May 10 2007 | Filed Under » Stocks. There are generally accepted accounting principles
    (GAAP) and rules for the preparation of a company's financial reporting. ...

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