FASBs

FASBs is a term commonly used to refer to the Financial Accounting Standards Board and the standards it issues. The Financial Accounting Standards Board (FASB) is a private, nonprofit organization responsible for establishing and improving financial accounting and reporting standards for nongovernmental entities in the United States. It operates under the oversight of the Financial Accounting Foundation (FAF), which appoints board members and funds its activities.

History and mandate: The FASB was established in 1973 to replace the former Accounting Principles Board (APB). Its mission is to develop and improve standards that provide useful information to investors, lenders, and other users of financial reports. The board follows a formal due-process process that includes research, public exposure drafts, comment periods, and opportunities for hearings or meetings with stakeholders.

Standards and codification: Historically the FASB issued Statements of Financial Accounting Standards (SFAS). In 2009 it implemented the Accounting Standards Codification (ASC), creating a single unified source of authoritative U.S. GAAP. Updates to the ASC are issued as Accounting Standards Updates (ASUs) that modify or add to the codification. The ASC consolidates thousands of standards into topic-based sections to simplify reference and application.

Process and governance: The FASB comprises seven full-time board members, appointed by FAF trustees. The standard-setting process involves staff research, external input, and public comment to ensure transparency and due process. The board also collaborates with advisory groups and user communities to inform its decisions.

Relation to global standards: The FASB engages with the International Accounting Standards Board (IASB) on convergent projects, but U.S. GAAP remains distinct from IFRS. The FASB’s standards guide financial reporting for most publicly traded companies in the United States and are widely applied by private entities and auditors.