The generally accepted accounting principles applied to small companies. Some argue that with small companies, which are primarily owner-managed, compliance with GAAP imposes a heavy burden in relation to the value the owners receive from the information in the annual accounts. There are difficulties in determining, however, the criteria that should be used to exempt companies as well as widespread concern that accounts that do not comply with accounting standards would not present a true and fair view of a company’s activities. Compare big GAAP. See also Financial Reporting Standard for smaller entities.