Financial Accounting Standards Board - FASB


DEFINITION of '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.

BREAKING DOWN 'Financial Accounting Standards Board - FASB'

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.

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  1. What do I do if I think an accountant is in violation of the Generally Accepted Accounting ...

    The Financial Accounting Standards Board (FASB) promulgates generally accepted accounting principles (GAAP) in the United ... Read Full Answer >>
  2. Can pro forma financial statements be more helpful to analysts and investors than ...

    Although there are inherent problems with investors relying on either the pro forma financial statements issued by companies ... Read Full Answer >>
  3. What is the difference between carrying value per share and earnings per share?

    Carrying value per share, more commonly referred to as book value of equity per share or BVPS, and earnings per share, or ... Read Full Answer >>
  4. How do businesses determine if an asset may be impaired?

    In the United States, assets are considered impaired when net carrying value (book value) exceeds expected future cash flows. ... Read Full Answer >>
  5. What are the FASB guidelines surrounding revenue recognition?

    Investors and lenders rely on a company's reported revenue-to-asset performance and future growth. To promote uniformity, ... Read Full Answer >>
  6. What are the main advantages and disadvantages to the cost accounting method?

    Contrasted with general accounting or financial accounting, the cost accounting method is an internally focused, firm-specific ... Read Full Answer >>
  7. How does the Fair Accounting Standards Board (FASB) regulate deferred tax liabilities?

    The Financial Accounting Standards Board (FASB) requires that deferred tax liabilities be recognized whenever there is a ... Read Full Answer >>
  8. How does financial accounting help decision making?

    There are three main areas where financial accounting helps decision making. It provides investors a baseline of analysis ... Read Full Answer >>
  9. What are the official FASB guidelines regarding contingent liabilities

    According to the Financial Accounting Standards Board, or FASB, a contingent liability is any existing condition or set of ... Read Full Answer >>
  10. Who is eligible to hold a deferred tax asset?

    Deferred tax assets can be held by an enterprise that expects to realize a future tax benefit. Examples of this include companies ... Read Full Answer >>
  11. What are some examples of ways businesses can use a deferred tax asset?

    In the United States, allowable claims of deferred tax assets are set forth by the Financial Accounting Standards Board, ... Read Full Answer >>
  12. How can I calculate the times interest earned in Excel?

    Times interest earned (TIE), also known as the interest coverage ratio, can easily be calculated in any version of Microsoft ... Read Full Answer >>
  13. Is there a limit to the number of SPVs / SPEs a company can create?

    There are no fixed, definable legal limits on the number of affiliate companies that a corporation can create. Special purpose ... Read Full Answer >>
  14. Who enforces GAAP?

    Generally accepted accounting principles (GAAP) are controlled by the Financial Accounting Standards Board (FASB), a nongovernmental ... Read Full Answer >>
  15. How is a deferred tax asset taxed?

    With deferred tax assets, taxes have been paid or carried forward but not yet recognized as a normal asset by the firm in ... Read Full Answer >>
  16. Why does GAAP require accrual basis rather than cash accounting?

    The accrual accounting method, or basis, provides a better sense of a company's overall financial health than the cash basis ... Read Full Answer >>
  17. What is the difference between GAAP and IFRS?

    The standards that govern financial reporting and accounting vary from country to country. In the United States, financial ... Read Full Answer >>
  18. What is the accounting treatment for unusual or infrequent items for IFRS and U.S. ...

    There are significant differences in the ways generally accepted accounting principles, or GAAP, and the international financial ... Read Full Answer >>
  19. What is the difference between IAS and GAAP?

    To answer this question, we must first define what IAS and GAAP are, in order to get a better grasp of the function they ... Read Full Answer >>

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