GAAP
Business & Finance abbreviation · Accounting
| Stands for | Generally accepted accounting principles |
|---|---|
| Categories | Business & Finance |
GAAP stands for Generally accepted accounting principles, an accounting abbreviation.
Framework of accounting standards, rules and conventions that companies follow when preparing financial statements; in the United States, US GAAP is set by the Financial Accounting Standards Board and must be used by domestic public companies filing with the SEC. It governs how revenue, expenses, assets and liabilities are recognized, measured and disclosed.
Example: Under GAAP, the company reported a net loss of $42 million, but on an adjusted basis it was profitable.
Usage notes
Pronounced "gap." Since 2009, US GAAP has been organized in the FASB Accounting Standards Codification (ASC), arranged by topic, such as ASC 606 for revenue. Most other countries use IFRS or a national GAAP, such as UK GAAP (FRS 102) or Japanese GAAP. Companies often report "non-GAAP" measures, such as adjusted EBITDA, which SEC rules require them to reconcile to the most comparable GAAP figure.
Related abbreviations
More accounting abbreviations
- FIFO – First in, first out
- FRS – Financial Reporting Standard
- FV – Fair value
- FY – Fiscal year
- FYE – Fiscal year-end
- G&A – General and administrative expenses
- GAAS – Generally accepted auditing standards
- GASB – Governmental Accounting Standards Board
- GL – General ledger
- GM – Gross margin
- GP – Gross profit
- GRN – Goods received note