Financial Accounting Foundation - FAF

AAA

DEFINITION of 'Financial Accounting Foundation - FAF'

An independent, private-sector organization that is mainly responsible for establishing and improving financial accounting and operating standards, and educating its constituents about those standards. The Financial Accouting Foundation has responsibility for the oversight, administration and finances of the Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), and their advisory councils. It also selects the members of the boards and councils that set accounting standards, and protects their independence.

INVESTOPEDIA EXPLAINS 'Financial Accounting Foundation - FAF'

The FAF is a non-stock Delaware corporation established in 1972 that operates only for educational, charitable, scientific and literary purposes.


Because capital markets and governments consist of so many participants with competing demands and proprietary interests, independence is key to the activities of the FAF's standard-setting boards, the FASB and GASB. This independence allows them to provide objectivity and integrity to the U.S. financial reporting system. Because the FAF is an independent entity with no stakes in specific outcomes, the FAF's boards can make objective decisions on accounting standards without being swayed by industrial lobbying groups or political pressure.




RELATED TERMS
  1. Credit Business Associate - CBA

    A designation awarded to those who show mastery in financial ...
  2. Auditing Standards Board - ASB

    The American Institute of Certified Public Accountants' (AICPA) ...
  3. National Association Of State Boards ...

    A U.S. nonprofit group founded in 1908 that seeks to enhance ...
  4. Government Accounting Standards ...

    An organization whose main purpose is to improve and create accounting ...
  5. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  6. Generally Accepted Auditing Standards ...

    A set of systematic guidelines used by auditors when conducting ...
Related Articles
  1. Financial Statement Manipulation An ...
    Markets

    Financial Statement Manipulation An ...

  2. Navigating Government And Nonprofit ...
    Retirement

    Navigating Government And Nonprofit ...

  3. International Reporting Standards Gain ...
    Insurance

    International Reporting Standards Gain ...

  4. What is the difference between IAS and ...
    Investing

    What is the difference between IAS and ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center