Being a CPA & coder this statement really annoys me, GAAP for those that don't know simply means "Generally agreed Accounting principals" and there is really no acceptable reason for this acronymn to be used outside of the (accounting) profession. Maybe it wasn't the authors intent but it smacks of those people who use jargon to help aggrandize their position when a simple inclusive explanation would have been more appropriate.
1) Whether or not people outside the accounting profession should use the acronym 'GAAP'.
2) Whether people use the term as jargon to help aggrandize their position.
I have no comment on point 2. On point 1, though, my position is the polar opposite of yours. Business people in general (and especially CEOs!) should understand the principles of accounting, the ways in which transactions are recorded etc. If they don't understand these things, how are they meant to understand their company's financial statements? If they can't understand their company's financial statements, how are they meant to manage the company?
BTW - I am also a qualified accountant, although this is not related to my current job. I feel so strongly about these issues, though, is that I periodically run an 'Intro to Accounting and Finance' course for interested colleagues, and have delivered similar training courses at other large tech companies in the past.
https://en.wikipedia.org/wiki/Generally_Accepted_Accounting_...
And that they are determined in the US by the FASB, which is part of the SEC:
https://en.wikipedia.org/wiki/Financial_Accounting_Standards...
The SEC, of course, being the federal agency that regulates all attempts to take investment.
So I think the acronym's use here is important, because it signals that there is a precise legal definition of the term revenue, and that startup founders, so used to hustling and half-assing things, should not fuck around when using that word.
GAAP for those that don't know simply means "Generally agreed
Accounting principals"