GAAP: Western Standards of US Accounting
GAAP are generally accepted Western standards of accounting and reporting, used in the U.S. and certain other countries. From English – General Accepted Accounting Principles (GAAP). GAAP standards regulate accounting treatment of certain practical situations in detail. Generally Accepted Accounting principles developed in the U.S. for independent accounting firms in an attempt to eliminate inconsistency in accounting for private companies and corporations. International system of accounting represents widely used accounting standards developed by the Council of Financial Accounting Standards Board. They are used to standardize financial accounting of joint-stock companies. Common accounting principles (or GAAP) are “basic rules” of financial reporting. These principles provide general framework that defines information to be included in the report and the way this information should be presented. Phrase “generally accepted accounting principles” includes b...