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GAAP vs. IFRS. GAAP (US Generally Accepted Accounting Principles) is the accounting standard used in the US, while IFRS (International Financial Reporting Standards) is the accounting standard used in over 110 countries around the world.
Definition. Income resulting from a firm's primary business operations, excluding extraordinary income and expenses. Also called earnings before interest and taxes (EBIT) , it gives a more accurate picture of a firm's profitability than gross income. Also called operating margin.