Note, however, that recently, fair market value plays an important role in the valuation of assets and liabilities. Revenue recognition principle: This principle requires that revenue be recorded when it is earned and realized or realizable. Matching principle: This principle states that expenses should be recorded in the same period as the income associated with those expenses. Disclosure Principle: This principle requires all companies to fully disclose information that could impact the decisions of users of financial information ("What are Generally Accepted Accounting Principles (GAAP)? - Accounting Questions and Answers (Q&A)),"