Generally Accepted Accounting Principles (GAAP)

Generally Accepted Accounting Principles (GAAP) refer to a set of standardized accounting principles, guidelines, and practices used by companies to prepare and present their financial statements. The implementation of GAAP guarantees that financial reporting maintains uniformity, enables meaningful comparisons, and promotes openness and clarity. GAAP provides a framework for how financial information should be recorded, measured, and reported. It covers various aspects of accounting, including revenue recognition, expense recognition, asset valuation, and financial statement presentation.