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Financial Accounting Standards Board

In the United States, a non-governmental body the SEC has charged with establishing and maintaining generally accepted standards for professional accountants. Founded in 1973, the FASB has published a variety of rules and clarifications on how accounting ought to be done in the United States. It is important to note that the FASB does not govern accounting ethics; rather, its purpose to govern the fundamentals of how accounting is conducted. For example, it has published guidelines on how to report a company's cash flows. The Financial Accounting Foundation oversees the FASB.


Financial Accounting Standards Board (FASB).

The Financial Accounting Standards Board (FASB) is an independent, self-regulatory board that establishes and interprets generally accepted accounting principles (GAAP).

It operates under the principle that the economy and the financial services industry work smoothly when credible, concise, and clear financial information is available.

FASB periodically revises its rules to make sure corporations are following its principles. The corporations are supposed to fully account for different kinds of income, avoid shifting income from one period to another, and properly categorize their income.

References in periodicals archive ?
In place of pooling, the FASB recommended mandatory use of the purchase method, which, unlike pooling, requires companies to account for goodwill when they report on acquisitions.
While the change in funding may relieve FASB of implicit pressures, Balhoff says, it may also orient the board more toward standards for public companies, to the detriment of the rest.
The FASB and International Accounting Standards Board (IASB) have reached differing conclusions on certain issues.
In developing high-quality accounting standards, standard setters may opt for either FASB or IASB guidance.
Although the FASB does not believe that tax opinions are required or appropriate in all instances, it noted that an unqualified "should prevail" tax opinion from a qualified expert, for which all conditions are objectively verifiable, may help to demonstrate that the probable threshold has been met.
What FASB wants, and what makes sense, is for CEOs to accept that it is the standards-setting body, and to engage with them on issues that will hit companies' bottom lines, such as the treatment of variable interest entities.
Copies of Statement 123(R) are available by calling the FASB Order Department at 800/748-0659 or by placing an order online.
FASB also is working with the EITF, AICPA and SEC to more clearly define their roles in selling accounting standards, including streamlining certain activities and modernizing financial reporting and disclosure.
25, 2006, FASB issued an FASB Exposure Draft, The Fair Value Option for Financial Assets and Financial Liabilities, for Phase 1.
According to proposed FSP Financial Accounting Statement (FAS) 109-a, the manufacturing deduction should be accounted for as a special deduction under the rules of FASB Statement No.
FASB Issues Accounting Standard to Improve Disclosures about Pension and Other Postretirement Benefit Plans; Publishes Revised Interpretation to Clarify and Expand on Accounting Guidance for Variable Interest Entities