Financial Accounting Standards Board (FASB)

FASB or Financial Accounting Standards Board is a non profit organization that’s aims to GAAP or generally accepted accounting principles within the US in the public interest. FASB was founded in the year 1973 in Norwalk, Connecticut, United States of America. The SEC (Securities and Exchange Commission) selected FASB as the private organization which is responsible for making accounting principles in the United States for the public companies. After replacing the CAP (Committee on Accounting Procedure) and the APB (Accounting Principles Board) of the AICPA (American Institute of Certified Public Accountants) the FASB was formed.

Missions of the Financial Accounting Standards Board (FASB)

The Financial Accounting Standards Board mission’s is to improve and establish principles of the financial accounting and reporting for the education and guidance of the people such as auditors, users of the financial data and issuers. In order to achieve this, the organization has five objectives and they are as follows:

• To enhance the expediency of the financial reporting by giving importance on the main characteristics of reliability and relevance, and on the qualities of consistency and comparability.
• To consider quickly any important fields of insufficiency in the financial reporting which may be improved via standard setting.
• To keep principles current to reflect fluctuations in the economy or in methods of doing business.
• To improve common understanding of the purposes and nature of the data in the financial reports.
• To promote international union of accounting principles concurrent with enhancing the quality of the financial reporting.

FASB Eleven Concepts 

• Realization
• Money measurement
• Materiality
• Matching
• Going concern
• Entity
• Dual aspect
• Cost
• Consistency
• Conservation
• Accounting period

Questionnaire: 

• What is FASB o?
• What are the Objectives of FASB?