GAAP (Generally Accepted Accounting Principles)

Generally Accepted Accounting Principles (GAAP) are a standardized framework of accounting rules, procedures, and conventions used for financial reporting in the United States. Developed by the Financial Accounting Standards Board (FASB), GAAP ensures consistency, transparency, and comparability of financial statements across organizations and industries.

Key principles under GAAP include:

• Revenue recognition principle

• Matching principle

• Full disclosure principle

• Historical cost principle

• Consistency and materiality

While GAAP is specific to the U.S., many global jurisdictions — including the UAE — either adopt International Financial Reporting Standards (IFRS) or maintain local equivalents inspired by GAAP. Startups and companies raising cross-border capital often reconcile accounts between GAAP and IFRS to satisfy investor or regulatory demands.