Financial Accounting Standards Board - FASB

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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.

INVESTOPEDIA EXPLAINS '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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  4. How do businesses determine if an asset may be impaired?

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  5. What are the FASB guidelines surrounding revenue recognition?

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  6. What are the main advantages and disadvantages to the cost accounting method?

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  7. How does the Fair Accounting Standards Board (FASB) regulate deferred tax liabilities?

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    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

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  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?

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  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?

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  16. Why does GAAP require accrual basis rather than cash accounting?

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