What it is
GAAP revenue is revenue recognized under ASC 606 / company policy. It is an accounting construct. ARR is an operating construct. Boards need both — and a bridge — not a swap.
How it relates to ARR
Multi-year prepay, ramps, usage, and services create timing differences between billings, deferred revenue, GAAP revenue, and ARR. Document the bridge instead of forcing one number to play both roles.
Where it breaks
Reporting breaks when slides label GAAP as ARR, when deferred revenue movements are ignored, or when FP&A forecasts ARR while accounting never sees the same contract set.
In the board pack
Show GAAP revenue next to ARR with an explicit bridge. Deep dive: ARR waterfall vs GAAP revenue.
Keep the written definition stable across close, the board pack, and diligence so the same word never means two math models.