What are Generally Accepted Accounting Principles?
GAAPs are a collection of set standards and procedures for businesses for financial reporting. These standards are issued by the Financial Accounting Standard Board (FASB) and the American Institute of Certified Public Accountants (AICPA) in the U.S. GAAPs cover different topics, including assets, equities, liabilities, expenses and revenues, financial statement presentation, derivatives, foreign currency, hedging, business combination and non-monetary transactions.