Financial Accounting Standards Board definition
/What is the Financial Accounting Standards Board?
The Financial Accounting Standards Board (FASB) is an organization that creates accounting standards for use within the Generally Accepted Accounting Principles (GAAP) framework. It does not provide accounting standards for governmental accounting - that task is handled by the Governmental Accounting Standards Board.
The FASB is the successor to the Accounting Principles Board, and has been functioning since 1973. Its accounting standards govern the manner in which non-governmental businesses present information within their financial statements. These standards are crucial for ensuring that financial information is presented in a consistent manner across industries.
The accounting standards issued by the FASB are recognized by the Securities and Exchange Commission (SEC) as being authoritative, and so must be followed by publicly-held companies filing reports with the SEC. These standards have been aggregated into the Accounting Standards Codification, which is designed to make the standards more searchable.
How is the Financial Accounting Standards Board Organized?
The Financial Accounting Standards Board is structured as a nonprofit private entity; it is not an extension of any government entity. It is overseen by the Financial Accounting Foundation. Both entities are located in Norwalk, CT.