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    • Please note: Historical cost and the matching principle are slowly disappearing, having been replaced by FASB No. 157 which requires companies to classify assets based on fair value.

  • Financial Accounting

    • In the United States the Financial Accounting Standards Board (FASB) has been the designated independent entity for established accounting reporting standards since 1973.
    • While, in theory, there can be many supportable ways of presenting accounting information on such topics as business combinations, subsequent events after the date of an audit, the fair value of financial instruments and the like, FASB will typically specify the ways such information should be reported.
    • You can find more information on FASB on their website at http://www.fasb.org.

  • Why an accounting system is important

    • In the United States the Financial Accounting Standards Board (FASB) has been the designated independent entity for established accounting reporting standards since 1973.
    • While, in theory, there can be many supportable ways of presenting accounting information on such topics as business combinations, subsequent events after the date of an audit, the fair value of financial instruments and the like, FASB will typically specify the ways such information should be reported.
    • You can find more information on FASB on their website at http://www.fasb.org .

  • Defining the Income Statement

    • Larger entities use the accrual basis, which is also the recommended method by the FASB.
    • Guidelines for statements of comprehensive income and income statements of business entities are formulated by the International Accounting Standards Board and numerous country-specific organizations, for example the FASB in the U.S.

  • 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.

  • Reporting of Financial Statement Analysis

    • These principles are set forward by the FASB, or the Financial Accounting Standards Board.
    • Its 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. " To achieve this, FASB has five goals:
    • The FASB accepts the nominal value of the US Dollar as the monetary unit of record, unadjusted for inflation.

  • 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