The GAAP is a system which actually states the main rules by which a financial statement should be made. Besides the well determined rules it encompasses, GAAP also presents the legislative rule which must be respected in order to prepare a legal financial statement. There are some basic concepts that make up the GAAP, but also well established assumptions and constraints. Such constraints include the objective principle for example which obligates an accountant to build up the company’s financial statement based only on evidence that is objective.