What is Local GAAP?

Local Generally Accepted Accounting Principles (GAAP) refers to the specific set of accounting standards and practices that are recognized and required for financial reporting within a particular country or jurisdiction. These principles govern how companies record and report their financial performance, including revenues, expenses, assets, liabilities, and equity. They are crucial for preparing financial statements that are accurate, transparent, and comparable within that specific region. Unlike international standards like IFRS, Local GAAP is tailored to the economic, legal, and regulatory environment of a specific country.