Principle of Regularity: The GAAP requires that all financial statements must be prepared in accordance with accepted accounting principles and practices.
Principle of Consistency: The GAAP requires that the same accounting method must be used from one period to the next in order to maintain consistent results.
Principle of Sincerity: The GAAP requires that all financial information must be presented in good faith and must not be misleading.
Principle of Permanence of Methods: The GAAP requires that once an accounting method has been selected, it must be consistently applied from period to period.
Principle of Non-Compensation: The GAAP requires that any losses must not be offset by gains and vice versa.