Financial Accounting Standards Board (FASB)

Definition

The Financial Accounting Standards Board is an independent organization responsible for establishing and improving financial accounting and reporting standards in the United States. Its guidelines ensure consistency and transparency in the financial statements of public companies.

Related terms

Generally Accepted Accounting Principles (GAAP):

These are the accounting rules and standards that FASB develops and maintains for preparing financial statements in the United States.

International Financial Reporting Standards (IFRS): These are global accounting standards developed by the International Accounting Standards Board (IASB), serving a similar purpose to FASB's GAAP but used internationally.

Securities and Exchange Commission (SEC): This is a federal agency that oversees securities transactions, stock exchanges, and financial reporting to protect investors; it enforces FASB's accounting standards among publicly traded companies