====== Generally Accepted Accounting Principles (GAAP) ======
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**Generally Accepted Accounting Principles (GAAP)** refers to a common set of accounting principles, standards, and procedures issued by the [[dido:public:ra:xapend:xapend.a_glossary:f:fasb]]. Public companies in the U.S. must follow GAAP when their accountants compile their financial statements.

  * GAAP is the set of accounting principles set forth by the FASB that U.S. companies must follow when putting together financial statements.1
  * GAAP aims to improve the clarity, consistency, and comparability of the communication of financial information.
  * GAAP may be contrasted with pro forma accounting, which is a non-GAAP financial reporting method.
  * The ultimate goal of GAAP is to ensure a company's financial statements are complete, consistent, and comparable.
  * There are 10 key concepts that guide the principles of GAAP.
    - Principle of Regularity 
    - Principle of Consistency
    - Principle of Sincerity 
    - Principle of Permanence of Methods
    - Principle of Non-Compensation
    - Principle of Prudence
    - Principle of Continuity 
    - Principle of Periodicity 
    - Principle of Materiality 
    - Principle of Utmost Good Faith 

Source: [[https://www.investopedia.com/terms/g/gaap.asp ]]


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