Generally Accepted Accounting Principles (GAAP)

Definition:

The rules, conventions, standards, and norms generally accepted and used for financial accounting. Although the term can apply to any jurisdiction, it is generally taken to refer to the US GAAP – a specific set of codified rules adhered to by certified public accountants in the United States.

Domestic Registrants must prepare the financial statements included in their SEC filings in accordance with US GAAP. Foreign Private Issuers may use US GAAP, IFRS or other recognized GAAPs.

Return to Glossary