GAAP

GAAP — Generally Accepted Accounting Principles — refers to the standardised set of accounting rules, principles, conventions, and procedures that companies must follow when preparing and presenting their financial statements to ensure consistency, comparability, transparency, and reliability of financial information across entities and reporting periods. In the United States, GAAP is established by the Financial Accounting Standards Board (FASB). In India, listed companies follow Indian Accounting Standards (Ind AS) — which are converged with International Financial Reporting Standards (IFRS) — while unlisted companies and smaller entities may follow Indian GAAP (AS — Accounting Standards issued by ICAI). Key GAAP principles include the accrual principle, going concern principle, materiality principle, prudence principle, and consistency principle. For investors and analysts on Ventura Securities, knowledge of applicable GAAP (Ind AS for listed Indian companies) is the foundational prerequisite for correctly reading, comparing, and analysing financial statements — and for identifying when companies are making aggressive or conservative accounting choices within the permitted range of GAAP.