Financial Accounting Standards Board (FASB)

Definition

The Financial Accounting Standards Board (FASB) is a private, non-profit organization in the United States that establishes accounting standards and principles for public and private companies and nonprofit organizations. 

What is the Financial Accounting Standards Board?

]The FASB is recognized as the assigned accounting standard-setting body in the United States by the Securities and Exchange Commission (SEC). It follows a transparent and inclusive standard-setting process that involves extensive research, analysis, and public input. Proposed accounting standards are subject to public exposure and comment periods, allowing stakeholders to provide feedback on proposed changes before they are finalized.

The FASB actively engages with stakeholders through various channels, including public roundtable discussions, comment letters, advisory groups, and outreach activities. This engagement ensures that the FASB considers diverse perspectives and experiences when developing accounting standards and addresses the needs of different users of financial information.

Furthermore, the FASB collaborates with international standard-setting bodies to meet or align their standards with international reporting standards. Additionally the FASB provides educational resources, including implementation guides, webinars, podcasts, and Q&A documents, to help stakeholders understand and apply accounting standards effectively.