How GAAP provide guidelines in preparation of Financial Statements? Explain with example. by Md. Shahidul Islam Shimul - Friday, 23 October 2020, 11:51 PM Number of replies: 0 GAAP guidelines require businesses to prepare financial statements according to the matching principle using the accrual basis of accounting. Because the objective is to ensure that expenses match with revenues, expenses are reported in the period in which the expense is incurred regardless of when the expense is paid. Permalink