Exploring the Generally Accepted Accounting Principles

Ms. Anandasrinivasan Deviprabha

Abstract

Generally Accepted Accounting Principles (GAAP) are a set of accounting standards, principles, and procedures that provide a framework for consistent and transparent financial reporting. This abstract explores the concept of GAAP, its significance, and its impact on financial statements and reporting practices. It discusses the key components of GAAP, including the fundamental accounting principles, measurement criteria, and disclosure requirements. Additionally, it highlights the importance of GAAP in ensuring the reliability, comparability, and credibility of financial information for various stakeholders. GAAP serves as the foundation for financial reporting by providing a standardized set of guidelines and rules that govern the preparation and presentation of financial statements. It ensures that financial information is recorded, classified, and disclosed in a consistent manner, allowing for meaningful comparisons across organizations and time periods. GAAP is typically enforced by regulatory bodies or accounting standard-setting organizations, such as the Financial Accounting Standards Board (FASB) in the United States or the International Financial Reporting Standards (IFRS) Foundation globally.