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LSDefine

Simple English definitions for legal terms

GAAP

Read a random definition: capital recovery

A quick definition of GAAP:

GAAP stands for Generally Accepted Accounting Principles. It's a set of rules that companies in the United States must follow when preparing and reporting their financial statements. These rules help ensure that financial information is accurate and consistent, making it easier for investors and others to understand a company's financial health. GAAP allows companies to use different accounting methods, but they must disclose which method they use. Publicly traded companies must follow GAAP and report their financial information in a specific way. They can also provide additional information, but it must follow certain rules to avoid misleading investors.

A more thorough explanation:

GAAP stands for Generally Accepted Accounting Principles and refers to the standard accounting rules in the United States. These rules govern how financial statements are prepared, presented, and reported.

For publicly traded companies, GAAP compliance is required by law. This means that companies must follow GAAP rules when reporting their financial performance to investors. However, companies are allowed to issue supplementary, non-GAAP performance reports if they wish.

The Financial Accounting Standards Board (FASB) is responsible for developing the most influential set of GAAP rules in the United States.

One example of GAAP compliance is the use of FIFO and LIFO accounting methods. Another example is the requirement for publicly traded companies to disclose GAAP compliant reports on their annual 10-K.

These examples illustrate how GAAP rules are used to ensure consistency and transparency in financial reporting, which helps investors make informed decisions about where to invest their money.

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General

General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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