Statement of Financial Accounting Standards - SFAS

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Accounting Changes And Error Correction

    Requirements for the accounting for and reporting of a change ...
  2. Income Statement

    A financial statement that measures a company's financial performance ...
  3. Bottom Line

    Refers to a company's net earnings, net income or earnings per ...
  4. Segment

    A component of a business that is or will generate revenues and ...
  5. Accounting Policies

    The specific policies and procedures used by a company to prepare ...
  6. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
Related Articles
  1. Footnotes: Early Warning Signs For Investors
    Retirement

    Footnotes: Early Warning Signs For Investors

  2. Accounting Rules Could Roil The Markets
    Bonds & Fixed Income

    Accounting Rules Could Roil The Markets

  3. Cleaning Up Dirty Surplus Items On The ...
    Markets

    Cleaning Up Dirty Surplus Items On The ...

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

    What is the difference between IAS and ...

Hot Definitions
  1. 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 ...
  2. Debit Spread

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

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

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center