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What is GAAP(General Accepted Accounting Principles) Video Lecture - Commerce
Text Transcript from Video
Welcome to the Investors Trading Academy talking
glossary of financial terms and events.
Our word of the day is “GAAP”
GAAP stands for Generally Accepted Accounting
Principles; these are the standard and commonly
accepted ways of recording and reporting accounting.
GAAP is the acronym for generally accepted
accounting principles.
That means the basic accounting principles
and guidelines such as the cost principle,
matching principle, full disclosure, etc.,
the detailed standards and other rules issued
by the Financial Accounting Standards Board
and its predecessor the Accounting Principles
Board, and generally accepted industry practices.
GAAP must be adhered to when a company distributes
its financial statements outside of the company.
If a corporation's stock is publicly traded,
the financial statements must also adhere
to rules established by the overseeing governmental
agency.
This includes having its financial statements
audited by an independent accounting firm.
Accountants use generally accepted accounting
principles to guide them in recording and
reporting financial information.
GAAP comprises a broad set of principles that
have been developed by the accounting profession.
In 2008, the Securities and Exchange Commission
issued a preliminary "roadmap" that may lead
the United States to abandon Generally Accepted
Accounting Principles in the and to join more
than 100 countries around the world instead
in using the London-based International Financial
Reporting Standard.
The SEC expressed their aim to fully adopt
International Financial Reporting Standards
in the U.S. by 2014.
With the convergence of the U.S. GAAP and
the international IFRS accounting systems,
as the highest authority over International
Financial Reporting Standards, the International
Accounting Standards Board is becoming more
important in the United States.
glossary of financial terms and events.
Our word of the day is “GAAP”
GAAP stands for Generally Accepted Accounting
Principles; these are the standard and commonly
accepted ways of recording and reporting accounting.
GAAP is the acronym for generally accepted
accounting principles.
That means the basic accounting principles
and guidelines such as the cost principle,
matching principle, full disclosure, etc.,
the detailed standards and other rules issued
by the Financial Accounting Standards Board
and its predecessor the Accounting Principles
Board, and generally accepted industry practices.
GAAP must be adhered to when a company distributes
its financial statements outside of the company.
If a corporation's stock is publicly traded,
the financial statements must also adhere
to rules established by the overseeing governmental
agency.
This includes having its financial statements
audited by an independent accounting firm.
Accountants use generally accepted accounting
principles to guide them in recording and
reporting financial information.
GAAP comprises a broad set of principles that
have been developed by the accounting profession.
In 2008, the Securities and Exchange Commission
issued a preliminary "roadmap" that may lead
the United States to abandon Generally Accepted
Accounting Principles in the and to join more
than 100 countries around the world instead
in using the London-based International Financial
Reporting Standard.
The SEC expressed their aim to fully adopt
International Financial Reporting Standards
in the U.S. by 2014.
With the convergence of the U.S. GAAP and
the international IFRS accounting systems,
as the highest authority over International
Financial Reporting Standards, the International
Accounting Standards Board is becoming more
important in the United States.
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Apr 21, 2026 Last updated
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