FASB

(noun)

The Financial Accounting Standards Board (FASB) is a private, not-for-profit organization whose primary purpose is to developgenerally accepted accounting principles (GAAP) within the United States in the public's interest.

Related Terms

Examples of FASB in the following topics:

  • Reasons for a Conceptual Framework

    • The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S.
    • FASB's Conceptual Framework, a project begun in 1973 to develop a sound theoretical basis for the development of accounting standards in the United States.
    • From 1978 to 2010 the FASB released eight concept statements.
    • ELEMENTS OF FINANCIAL STATEMENTS; a replacement of FASB Concepts Statement N. 3, also incorporating an amendment of FASB Concepts Statement No. 2 (SFAC N. 6) 1985
    • With a sound conceptual framework in place the FASB is able to issue consistent and useful standards.

  • Standard-Setting Groups: SEC, AICPA, and FASB

    • The SEC enforces and regulates security laws, the AICPA dictates the professional conduct of accountants, and the FASB develops GAAP.
    • The APB issued pronouncements on accounting principles until 1973, when it was replaced by the Financial Accounting Standards Board (FASB).
    • The APB was disbanded in the hopes that the smaller, fully independent FASB could more effectively create accounting standards.
    • The FASB's mission is "to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. "
    • The FASB sets standards based on their conceptual framework.

  • Introduction to GAAP

    • Currently, the Financial Accounting Standards Board (FASB) establishes generally accepted accounting principles for public and private companies, as well as for non-profit organizations.
    • Circa 2008, the FASB issued the FASB Accounting Standards Codification, which reorganized the thousands of US GAAP pronouncements into roughly 90 accounting topics.
    • As of 2010, the convergence project was underway with the FASB meeting routinely with the IASB.
    • The FASB accepts the nominal value of the US Dollar as the monetary unit of record unadjusted for inflation.
    • Please note: Historical cost and the matching principle are slowly disappearing, having been replaced by FASB No. 157 which requires companies to classify assets based on fair value.

  • Current Obligations Expected to Be Refinanced

    • Per FASB 6, current obligations that an enterprise intends and is able to refinance with long term debt have different reporting requirements.

  • Differences Between Accrual-Basis and Cash-Basis Accounting

    • The Financial Accounting Standards Board (FASB), which dictates accounting standards for most companies—especially publicly traded companies—discourages businesses from using the cash model because revenues and expenses are not properly matched.

  • Fundamental Concepts in Accounting

    • The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that

  • Calculating Fair Value

    • FASB indicates that assumptions enter into models that use Level 2 inputs, a condition that reduces the precision of the outputs (estimated fair values), but nonetheless produces reliable numbers that are representationally faithful, verifiable and neutral.
    • Level Three -- The FASB describes Level 3 inputs as "unobservable."

  • Reporting Equity Investments

    • FASB interpretation 35 (FIN 35) underlines the circumstances where the investor is unable to exercise significant influence).

  • Key Considerations for the Statement of Cash Flows

    • A cash flow statement provides information beyond that available from other financial statements, such as the Income Statement and the Balance Sheet, through providing a reconciliation between the beginning and ending balances of cash and cash equivalents of a firm over a fiscal or accounting period.The main purpose of the statement, according to the Financial Accounting Standard Board (FASB) is to provide information about the changes of an entity's cash or cash equivalents in the accounting period .

  • Current Issues in Reporting and Disclosure

    • Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards 157: Fair Value Measurement, which "defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. " This statement is effective for financial reporting fiscal periods commencing after November 15, 2007 and the interim periods applicable.
    • FASB has moved against "Opinion 25," which left it open to businesses to monetize options according to their "intrinsic value," rather than their "fair value. " The preference for fair value appears to be motivated by its voluntary adoption by several major listed businesses and the need for a common standard of accounting.