Financial Accounting Standards Board - FASB

Financial Accounting Standards Board - FASB

A seven-member independent board consisting of accounting professionals who establish and communicate standards of financial accounting and reporting in the United States. FASB standards, known as generally accepted accounting principles (GAAP), govern the preparation of corporate financial reports and are recognized as authoritative by the Securities and Exchange Commission.

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Accounting standards are crucial in an efficient market, as information must be transparent, credible and understandable. The FASB sets out to improve corporate accounting practices by enhancing guidelines set out for accounting reports, identifying and resolving issues in a timely manner and creating a uniform standard across the financial markets.

See also: Accounting, Audit, Cook the Books, Emerging Issues Task Force - EITF, Generally Accepted Accounting Principles - GAAP, International Accounting Standards - IAS, Securities & Exchange Commission - SEC, Voodoo Accounting