GAAP: Understanding It and the 10 Key Principles - investopedia.com  ## Metadata - Author: **investopedia.com** - Full Title: GAAP: Understanding It and the 10 Key Principles - Category: #articles - Tags: #business - URL: https://www.investopedia.com/terms/g/gaap.asp ## Highlights - GAAP is the set of accounting rules set forth by the FASB that U.S. companies must follow when putting together financial statements. GAAP aims to improve the clarity, consistency, and comparability of the communication of financial information. GAAP may be contrasted with pro forma accounting, which is a non-GAAP financial reporting method. The ultimate goal of GAAP is to ensure a company's financial statements are complete, consistent, and comparable. GAAP is used mainly in the U.S., while most other jurisdictions use the IFRS standards. 0 seconds of 1 minute, 43 secondsVolume 75%