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).

RELATED TERMS
  1. Accounting Principles

    The rules and guidelines that companies must follow when reporting ...
  2. Accounting Principles Board - APB

    The prior authoritative body of the American Institute of Certified ...
  3. Accounting Standard

    A principle that guides and standardizes accounting practices. ...
  4. Accounting Policies

    The specific policies and procedures used by a company to prepare ...
  5. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  6. Lady Godiva Accounting Principles ...

    A theoretical set of accounting principles under which corporations ...
Related Articles
  1. Economics

    What are Accounting Principles?

    The term accounting principles refers to rules and guidelines companies use to help them record their business and financial transactions.
  2. Personal Finance

    The Banking System: Non-Bank Financial Institutions

    ByStephen D. Simpson, CFA Savings and LoansSavings and loan associations, also known as S&Ls or thrifts, resemble banks in many respects. Most consumers don't know the differences between ...
  3. Options & Futures

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  4. Economics

    An Introduction to Government Loans

    Government loans further policymakers' efforts to create positive social outcomes by offering timely access to capital for qualified candidates.
  5. Entrepreneurship

    Business Owners: A Guide To Qualified Retirement Plan Loans

    Thinking of adding a loan feature to your company's plan? Here's what you need to know.
  6. Savings

    Understanding Savings Accounts

    A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
  7. Savings

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  8. Fundamental Analysis

    Analyzing A Bank's Financial Statements

    A careful review of a bank's financial statements can help you identify key factors in a potential investment.
  9. Investing Basics

    What Is A Trading Account?

    A trading account enables an investor to buy and sell securities.
  10. Professionals

    What is Accounting?

    Accounting is the recording of financial transactions of a business or organization. It also includes the process of summarizing, analyzing and reporting these transactions in financial statements.
RELATED FAQS
  1. What are some of the basic Generally Accepted Accounting Principles?

    Learn more about generally accepted accounting principles determined by the Financial Accounting Standards Board, including ... Read Answer >>
  2. How should a change in accounting principle be recorded and reported?

    Learn about changes in accounting principle and why businesses make them, as well as the reporting and recording requirements ... Read Answer >>
  3. Who sets the guidelines for accounting principles?

    Understand the generally accepted accounting principles and why they were put in place. Learn what entity sets the guidelines ... Read Answer >>
  4. Who enforces GAAP?

    Take a deeper look at the private enforcement mechanisms behind the generally accepted accounting principles for American ... Read Answer >>
  5. How is market to market (MTM) treated under Generally Accepted Accounting Principles ...

    Learn how the concept of mark to market accounting is treated within generally accepted accounting principles, or GAAP, in ... Read Answer >>
  6. What economic factors affect savings account rates?

    Find out how supply, demand and central bank policy all affect savings account rates offered by banks for extra deposits ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center