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FASB tends to be the major user of the SFAC and as a result it may be amended, superseded or withdrawn by it.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.