The Generally Accepted Accounting Principles (GAAP) Revenue Recognition Standard is a core principle of accounting which outlines how organizations should recognize their revenues. In brief, it requires that companies recognize revenue when there is an exchange of services forcash or other assets, and when the amount of revenue can be reliably measured. GAAP also requires that companies provide sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Ultimately, the goal of this standard is to create transparency and consistency in how organizations report their revenues.