What Is GAAP? (Definition, 10 Principles, Compliance)

"What Is GAAP? (Definition, 10 Principles, Compliance)" gives participants a clear, practical, and structured understanding of the foundation of U.S. financial reporting. Rather than diving into technical accounting calculations, this training focuses on the purpose, principles, and compliance expectations that shape how financial statements are created and interpreted.

The session begins with the origins and evolution of GAAP-why the standards were created, who governs them, and how they ensure consistency across organizations. Participants will learn how the Financial Accounting Standards Board (FASB) sets rules, how the Accounting Standards Codification (ASC) organizes them, and why regulators and auditors rely on GAAP to maintain market integrity.

Next, the training introduces the 10 core GAAP principles-including regularity, consistency, sincerity, permanence of methods, non-compensation, prudence, continuity, periodicity, materiality, and utmost good faith. Each principle is explained in simple language, with examples of how it affects actual financial statements. Participants will see how these foundational rules influence accounting choices, reporting methods, and business decisions.

Why should you Attend:
Financial statements can appear clear on the surface-but without understanding GAAP, the numbers may not mean what you think they mean. Even seasoned professionals can misread performance trends, overlook warning signs, or misinterpret risk exposure when they don’t understand the rules shaping those figures.

GAAP sets the boundaries for how revenue is recognized, how expenses are matched, how assets and liabilities are valued, and what disclosures companies must provide to explain their financial condition. Without this foundation, financial analysis becomes guesswork. You might see strong revenue growth without realizing it resulted from an aggressive recognition method, or misjudge a company’s financial strength because liabilities or risks were not disclosed in a way you expected.

Have you ever looked at a partner's financials and wondered whether the numbers reflect economic reality-or creative accounting within GAAP’s rules? Have you encountered discrepancies that didn’t make sense? Are you responsible for oversight, due diligence, vendor management, audits, or risk decisions but lack confidence in interpreting financial statements? These concerns create hesitation and uncertainty that can jeopardize sound judgment.

Areas Covered in the Session:

• Definition and purpose of GAAP
• Overview of the 10 GAAP principles
• How GAAP ensures consistency, transparency, and comparability
• Understanding the role of FASB and the ASC
• Revenue recognition basics
• Expense recognition and the matching principle
• Measurement, valuation, and materiality concepts
• Required disclosures under GAAP
• How GAAP shapes the income statement, balance sheet, and cash flow statement
• Examples relevant to fintechs, MSBs, banks, and partners
• Key compliance expectations and common pitfalls
• Recent GAAP updates affecting financial reporting

• Compliance Professionals
• Risk Managers
• Financial Crime and AML Professionals
• Operations Managers
• Product Managers
• Internal Auditors
• Fintech Partner Managers
• Vendor Management Teams
• Analysts and Business Strategists
• Anyone who reviews or relies on Financial Data