Regulatory Accounting Principles - RAP


DEFINITION of 'Regulatory Accounting Principles - RAP'

A comprehensive set of rules and regulations for accounting that were introduced by the Federal Home Loan Bank Board. Regulatory accounting principles were created to assist low net-worth savings and loan associations with meeting capital requirements. These rules allowed S&Ls to amortize such items as gains or losses from sales over long periods of time.

BREAKING DOWN 'Regulatory Accounting Principles - RAP'

Unfortunately, the introduction of regulatory accounting principles contributed to the downfall of many S&Ls. The relaxed rules enabled many otherwise insolvent institutions to artificially increase their net worths and continue doing business. RAP stands in contrast to GAAP (Generally Accepted Accounting Principles).

  1. Statement of Financial Accounting ...

    A formal document issued by the Financial Accounting Standards ...
  2. Accounting

    The systematic and comprehensive recording of financial transactions ...
  3. Financial Accounting

    The process of recording, summarizing and reporting the myriad ...
  4. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  5. Finance

    The science that describes the management, creation and study ...
  6. International Accounting Standards ...

    An older set of standards stating how particular types of transactions ...
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