Generally Accepted Accounting Principles (GAAP)

Generally accepted accounting principles (GAAP) are the minimum standards or rules organizations must follow in determining what financial information should be included in the general-purpose financial statements and how the information should be presented. These basic guidelines form the basis around which financial statements are created. WHO ESTABLISHES GAAP? The primary organizations responsible for setting accounting standards are the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board (FASB), and the Federal Accounting Standards Advisory Board (FASAB).