Statement of Financial Accounting Concepts - SFAC


DEFINITION of 'Statement of Financial Accounting Concepts - SFAC'

A document issued by the Financial Accounting Standards Board (FASB) covering broad financial reporting concepts. The purpose of the SFAC document is to provide a general overview of accounting concepts, definitions and ideas. It is seen as a prelude to the statement of financial accounting standards.

BREAKING DOWN 'Statement of Financial Accounting Concepts - SFAC'

FASB tends to be the major user of the SFAC and as a result it may be amended, superseded or withdrawn by it. The statement of financial accounting concepts details future concepts that may be used to develop accounting standards. The SFAC is used as a blueprint for the future development of reporting policy and procedures.

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  1. What is the difference between IAS and GAAP?

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  3. Do prepayments provide working capital?

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  4. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  5. What is a profit and loss (P&L) statement and why do companies publish them?

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