GAAP
n. plural-onlyn. Stands for Generally Accepted Accounting Principles. A set of rules and standards that accountants must follow when they prepare financial reports for a company.
n. Abbreviation for Generally Accepted Accounting Principles. A common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.
The company ensures its financial reports follow GAAP.
Publicly traded companies in the United States are required to prepare their financial statements according to GAAP to ensure transparency.
While international firms often use IFRS, those operating within the American market must reconcile their accounts with GAAP to satisfy regulatory requirements and provide consistency for domestic investors.
Usually treated as a plural noun phrase, though often referred to as a singular framework; typically used without an article when referring to the system of rules.