Generally Accepted Accounting Principles (GAAP)

The term refer to a common set of accounting rules, regulations, and processes established by the Financial Accounting Standards Board (FASB) (FASB). When assembling their financial accounts, American public firms' accountants are required to adhere to GAAP. The main objective of GAAP is to guarantee the accuracy, consistency, and comparability of financial accounts for businesses. Most other countries utilize the IFRS standards, while the U.S. primarily uses GAAP.