LADY GODIVA ACCOUNTING PRINCIPLES - LGAP

A set of accounting principles that fully discloses all information beyond what generally accepted accounting principles (GAAP) require to corporations. It includes disclosure of the following: an all off-balance sheet items, how new goodwill accounting rules (introduced in 2002) impact earnings per share (EPS), the impact on EPS of stock options issued in lieu of salaries, and how pension expenses are accounted for. Corporations should abide with this principle to maintain credibility with its investors.

Financial analyst Rick Wayman coined the term after the Enron bankruptcy and named it after Lady Godiva, a well-known historical figure from 11th century. She was known for riding a horse naked in Coventry, England to show disapproval in new tax rates the Lord of Coventry, her husband and an earl, imposed on people.

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