generally accepted accounting principles


abbreviation: GAAP. In America, the conventions, rules and procedures of accounting that an auditor believes should have been followed in preparing the accounts of an entity in order for those accounts to present fairly the financial position of the entity. The Council of the American Institute of Certified Public Accountants adopted, in October 1964, a resolution to the effect that accounting principles accepted in Opinions of the Accounting Principles Board must be regarded by members of the Institute as generally accepted accounting principles. Any other principle that has substantial authoritative support is also regarded as a generally accepted accounting principle.


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