In Spain, the generally accepted accounting principles (GAAP) are called Plan General de Contabilidad (PGC). The PGC sets out the accounting principles and rules that companies must follow when preparing their financial statements. It provides guidance on issues such as the presentation of financial statements, the recognition and measurement of assets and liabilities, and the disclosure of information in the financial statements. The PGC is based on the European Union's Accounting Directives and is periodically updated to reflect changes in international accounting standards.