Accepted Accounting Principles

What Are the Generally Accepted
Accounting Principles (GAAP)?

GAAP is guided by ten key tenets and is a rules-based set of standards. It is often compared with the International Financial Reporting Standards (IFRS), which is considered more of a principles-based standard. IFRS is a more international standard, and there have been recent efforts to transition GAAP reporting to IFRS.

The 10 Key Principles of GAAP

Principle of Regularity

Principle of Consistency

Principle of Sincerity

Principle of Permanence of Methods

Principle of Non-Compensation

Principle of Prudence

Principle of Continuity

Principle of Periodicity

Principle of Materiality

Principle of Utmost Good Faith