Definition and Explanation of GAAP
Definition and Explanation of GAAP is the common set of accounting principles, standards and practices that companies use to assemble their financial statements. GAAP are a combination of trustworthy standards (set by policy boards) and simply the commonly accepted ways of evidence and reporting accounting information.
Generally Accepted Accounting Principles (GAAP): Generally accepted accounting principles (GAAP) are those principles that have substantial authoritative support. The AICPA’s code of professional conduct requires that members prepare financial statements in accordance with generally accepted accounting principles (GAAP). Specifically rule 203 of this code