What does GAAP mean?
You may have seen the term GAAP in relation to a company's accounts, but what does it stand for and what does it mean? GAAP is an acronym that stands for Generally Accepted Accounting Principles . It is a set of accounting standards and guidelines that provide a consistent framework for companies to follow when preparing their financial statements. GAAP is intended to ensure that companies present their financial information in a transparent and consistent manner, so that investors and other stakeholders can accurately compare the financial performance of different companies. GAAP is issued by the Financial Accounting Standards Board (FASB) and is followed by most publicly-traded companies in the United States. It is also widely adopted by private companies, and it is often used as a benchmark for international accounting standards. In the UK, 'Generally Accepted Accounting Practice in the UK' (UK GAAP) is the body of accounting standards published by the UK’s Financial R...