Business Pitch Dictionary by pitch.dog
Accounting policy, GAAP & adjustments · Working

Matching principle

Also called: matching

ELI5

Informal description of recognising related costs in relation to associated revenue or period under accrual accounting.

Used in conversation

“Finance needs to reconcile matching principle before the numbers are released.”

Pitch context

You will see “Matching principle” in financial models, budgets, board packs and investor materials when the discussion reaches accounting policy, gaap & adjustments.

Why it matters: In accounting policy, gaap & adjustments, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 4

Direct term-level sources and supporting source families.