Statement of Financial Accounting Standards - SFAS


DEFINITION of 'Statement of Financial Accounting Standards - SFAS'

A formal document issued by the Financial Accounting Standards Board (FASB), which details accounting standards and guidance on selected accounting policies set out by the FASB. These statements of financial accounting standards are issued, with the expectation that all reporting companies listed on American stock exchanges will adhere to them. The standards are created to ensure a higher level of corporate transparency.

BREAKING DOWN 'Statement of Financial Accounting Standards - SFAS'

New SFAS releases can have a huge affect on a business' bottom line. For example, the FAS-123(R), which refers to the expensing of share-based awards, can increase a company's expenses dramatically, often by billions of dollars. FAS-123(R) was created to enable investors and regulators to better evaluate the firm's true option expenses.

  1. Accounting Changes And Error Correction

    Requirements for the accounting for and reporting of a change ...
  2. Bottom Line

    Refers to a company's net earnings, net income or earnings per ...
  3. International Accounting Standards ...

    An older set of standards stating how particular types of transactions ...
  4. Income Statement

    A financial statement that measures a company's financial performance ...
  5. Financial Accounting Standards ...

    A seven-member independent board consisting of accounting professionals ...
  6. Generally Accepted Auditing Standards ...

    A set of systematic guidelines used by auditors when conducting ...
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  1. What are some examples of items that count as comprehensive income?

    In business accounting, other comprehensive income, or OCI, includes those revenues, expenses, gains and losses that have ... Read Full Answer >>
  2. How is market to market (MTM) treated under Generally Accepted Accounting Principles ...

    Mark to market accounting became a part of generally accepted accounting principles, or GAAP, in 1993 when Statement of Financial ... Read Full Answer >>
  3. Where did market to market (MTM) accounting come from?

    Mark to market accounting has been around in concept since the stock market began; however, it was not officially part of ... Read Full Answer >>
  4. What is the difference between IAS and GAAP?

    To answer this question, we must first define what IAS and GAAP are, in order to get a better grasp of the function they ... Read Full Answer >>
  5. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  6. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>

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