Generally accepted accounting principles

Accountancy
Key concepts
Accountant Accounting period Accrual Bookkeeping Cash and accrual basis Cash flow forecasting Chart of accounts Convergence Journal Special journals Capital Maintenance in Units of Constant Purchasing Power Cost of goods sold Credit terms Debits and credits Double-entry system Mark-to-market accounting FIFO and LIFO GAAP / IFRS Management Accounting Principles General ledger Goodwill Historical cost Matching principle Revenue recognition Trial balance
Fields of accounting
Cost Financial Forensic Fund Management Tax (U.S.)
Financial statements
Balance sheet Cash flow statement Income statement Statement of retained earnings Notes Management discussion and analysis XBRL
Auditing
Auditor's report Control self-assessment Financial audit GAAS / ISA Internal audit Sarbanes–Oxley Act
Accounting qualifications
CIA CA AIA CPA CCA CGA CMA CAT AAT CFE CICA ACCA CIMA CGMA

Generally accepted accounting principles (GAAP) refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or standard accounting practice. These include the standards, conventions, and rules that accountants follow in recording and summarizing and in the preparation of financial statements.

Examples

• Generally accepted accounting principles (United States)
• Generally accepted accounting principles (United Kingdom)
• Generally accepted accounting principles (Plan Comptable Général) (France)
• Grundsätze ordnungsmäßiger Buchführung (Germany)
• Chinese Accounting Standards (China)
• International Financial Reporting Standards (international)

Global standardization

Many countries use or are converging on the International Financial Reporting Standards (IFRS), established and maintained by the International Accounting Standards Board. In some countries, local accounting principles are applied for regular companies but listed or large companies must conform to IFRS, so statutory reporting is comparable internationally, across jurisdictions.

All listed EU companies have been required to use IFRS since 2005, Canada moved in 2009, Taiwan in 2013, and other counties are adopting local versions.

In the United States, while "...the SEC published a statement of continued support for a single set of high-quality, globally accepted accounting standards, and acknowledged that IFRS is best positioned to serve this role..." progress is less evident.

See also

• Center for Audit Quality (CAQ)
• Chinese accounting standards
• Constant item purchasing power accounting
• Generally Accepted Accounting Principles (Canada)
• Generally Accepted Accounting Principles (France)
• Generally Accepted Accounting Principles (UK)
• Generally Accepted Accounting Principles (United States)
• International Financial Reporting Standards
• Philosophy of accounting
• Statutory accounting principles for insurance companies in the US
• BAAP abbreviation for a field of cost accounting

External links

• Accounting Standards Guide