Financial Accounting Standards Board - FASB

AAA

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.

RELATED TERMS
  1. Minimum Lease Payments

    The lowest amount that a lessee can expect to make on a lease ...
  2. Financial Accounting Foundation ...

    An independent, private-sector organization that is mainly responsible ...
  3. Accountant International Study ...

    An organization that studied the differences in accounting practices ...
  4. Full-Cost Method

    An accounting system used by companies that incur exploration ...
  5. Emerging Issues Task Force - EITF

    An organization formed in 1984 by the Financial Accounting Standards ...
  6. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
Related Articles
  1. What is the accounting treatment for ...
    Personal Finance

    What is the accounting treatment for ...

  2. Top 8 Ways Companies Cook The Books
    Personal Finance

    Top 8 Ways Companies Cook The Books

  3. A New Approach To Equity Compensation ...
    Options & Futures

    A New Approach To Equity Compensation ...

  4. The Benefits And Value Of Stock Options
    Options & Futures

    The Benefits And Value Of Stock Options

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center