What Is a Statement of Financial Accounting Standards?
Statements of Financial Accounting Standards (SFAS), published by the Financial Accounting Standards Board (FASB), provided guidance on a specific accounting topic, until 2009.
SFASs were published to address specific accounting issues, with a view to enhancing the accuracy and transparency of financial reporting. There was a lengthy public consultation about the potential consequences of a rule change, before an SFAS was published.
Once an SFAS was published, it became part of the FASB accounting standards, known as generally accepted accounting principles (GAAP), that govern the preparation of corporate financial reports and are recognized as authoritative by the Securities and Exchange Commission (SEC), which regulates American stock exchanges.
SFAS have been superseded by the FASB Accounting Standards Codification, which became effective after September 2009. This codification is now updated via Accounting Standards Updates (ASUs).