See generally accepted accounting rules. GAAP is important in insurance accounting because the state that regulates insurance uses more conservative STAT accounting.
GAAP means, Agreements, rules and procedures necessary to determine the accepted methods of accounting at any time. The highest level of these principles is set by the Financial Accounting Standards Board (FASB).
GAAP means: Generally accepted accounting rules are the rules and regulations that should be followed while maintaining financial records and accounting books.
Meanings of GAAP
A set of generally accepted accounting rules, principles and standards that companies must follow when preparing their financial statements.