Moneyzine
Contents
/Investment Guides /Financial Accounting Standards Board (FASB)

Financial Accounting Standards Board (FASB)

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
January 18th, 2024
Advertiser Disclosure
Financial Accounting Standards Board (FASB)

Definition

The Financial Accounting Standards Board, or FASB, is an independent, non-profit organization which establishes the financial accounting standards used by companies in the preparation of financial reports.

Explanation

Generally Accepted Accounting Principles, or GAAP, is a set of standards used by companies in the preparation of financial statements such as the balance sheet, income statement, and statement of cash flows. The standards established by the Financial Accounting Standards Board are deemed as authoritative to agencies such as the Securities and Exchange Commission.

The FASB has been establishing accounting standards since 1973. The process begins with a research effort that involves an accounting issue, and ends with an authoritative statement that outlines the proper reporting of this financial information.

The creation of standards and guidelines ensures consistent information is reported, which provides the users of financial reports with actionable information. The FASB works in conjunction with a number of independent business and professional organizations, including the Financial Accounting Foundation (Foundation), the Financial Accounting Standards Advisory Council (FASAC), the Governmental Accounting Standards Board (GASB), and the Governmental Accounting Standards Advisory Council (GASAC).

Related Terms

  • Income Statement
    The income statement is a financial accounting report that demonstrates how net income, or profit, is derived from revenues. The main categories appearing on an income statement include revenues, cost of goods sold, operating expenses, non-recurring items and net income.
    Moneyzine Editor
    Moneyzine Editor
    January 22nd, 2024
  • Balance Sheet
    Also known as a statement of financial position, the balance sheet is used to show the financial health of a company at a particular point in time. The balance sheet consists of assets, liabilities, and owner's equity in the company. It is one of the four key financial statements issued by public companies.
    Moneyzine Editor
    Moneyzine Editor
    January 8th, 2024
  • Generally Accepted Accounting Principles (GAAP)
    The term Generally Accepted Accounting Principles, or GAAP, is used to describe a set of guidelines, accounting rules, techniques and frameworks utilized in the preparation of a company's financial statements.
    Moneyzine Editor
    Moneyzine Editor
    January 19th, 2024
  • Accounting Standards Pronouncements
    The term Accounting Standards Pronouncements refers to a hierarchy of communications from the Financial Accounting and Standards Board. Generally, these pronouncements consist of Accounting Standards Updates, Statements of Financial Accounting Concepts, and "other" communications.
    Moneyzine Editor
    Moneyzine Editor
    December 12th, 2023

Contributors

Moneyzine 2024. All Rights Reserved.