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. Investopedia Says:
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. Related Terms:
Accounting
Audit
Cook The Books
Emerging Issues Task Force - EITF
Generally Accepted Accounting Principles - GAAP
International Accounting Standards - IAS
Material Weakness
Securities and Exchange Commission - SEC
Statement of Financial Accounting Concepts - SFAC
Voodoo Accounting |