Indian GAAP (Generally Accepted Accounting Principles) refers to the framework of accounting standards, principles, and procedures used by companies in India to prepare and present their financial statements. These principles ensure consistency, transparency, and comparability across organizations, making financial information reliable for investors, regulators, and stakeholders.

Under Indian GAAP, companies are required to follow guidelines issued by the Institute of Chartered Accountants of India (ICAI). These standards cover aspects such as revenue recognition, asset valuation, depreciation, inventory measurement, and disclosure requirements. The main objective of Indian GAAP is to present a true and fair view of a companyís financial performance and position while adhering to statutory and ethical accounting practices.

While Indian GAAP has served as the foundation for corporate reporting for decades, India has gradually transitioned toward Ind AS (Indian Accounting Standards), which are aligned with the International Financial Reporting Standards (IFRS). Large listed and unlisted companies have already adopted Ind AS to improve global comparability and attract foreign investment. However, many small and medium enterprises (SMEs) still follow traditional Indian GAAP due to simpler reporting requirements and lower compliance costs.

In essence, Indian GAAP provides a structured and standardized approach for recording and reporting financial information, ensuring that all stakeholders can assess a companyís financial health accurately. With the ongoing move toward Ind AS, Indian GAAP continues to play a crucial role in supporting financial integrity, especially for entities not yet covered under the new standards. Understanding these principles is essential for investors, accountants, and students of finance to interpret financial statements effectively and make informed economic decisions.