{"id":3920,"date":"2023-03-09T18:11:52","date_gmt":"2023-03-09T18:11:52","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/generally-accepted-accounting-principles-gaap\/"},"modified":"2023-03-09T18:11:52","modified_gmt":"2023-03-09T18:11:52","slug":"generally-accepted-accounting-principles-gaap","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/generally-accepted-accounting-principles-gaap\/","title":{"rendered":"Generally Accepted Accounting Principles (GAAP)"},"content":{"rendered":"<p>\nFinancial statements in India are prepared on the basis of accounting standards issued by the Institute of Chartered Accountants of India (ICAI) as per provisions and guidelines laid by the Companies Act 2013. Similarly, all the public companies in the US follow GAAP (Generally Accepted Accounting Principles) which lays out the common set of accounting rules, standards, and procedures for companies to follow while preparing their accounting statements.<\/p>\n<h2>GAAP Explained<\/h2>\n<p>GAAP is more of a rules-based system of standards and is different from IFRS, (International Financial Reporting Standards) which is considered to be more robust, practical and international in nature and applicability.<br \/>\nThe ten principles or concepts on which GAAP is based are:<br \/>\nPrinciple of Consistency<br \/>\nPrinciple of Regularity<br \/>\nPrinciple of Sincerity<br \/>\nPrinciple of Permanence of Method<br \/>\nPrinciple of Prudence<br \/>\nPrinciple of Continuity<br \/>\nPrinciple of Materiality<br \/>\nPrinciple of Periodicity<br \/>\nPrinciple of Non-compensation<br \/>\nPrinciple of Good Faith<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Financial statements in India are prepared on the basis of accounting standards issued by the Institute of Chartered Accountants of India (ICAI) as per provisions and guidelines laid by the Companies Act 2013. Similarly, all the public companies in the US follow GAAP (Generally Accepted Accounting Principles) which lays out the common set of accounting [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3920","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3920"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3920\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}