Financial Accounting Standards Board

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The Financial Accounting Standards Board (FASB) is a US-American accounting body organized under private law. Its purpose is to determine what United States Generally Accepted Accounting Principles (US-GAAP) are for companies and private sector organizations. It has been recognized in this role by the Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants (AICPA) since 1973 . Since the SEC, the US supervisory authority for securities and stock exchanges, can prescribe what US GAAP is for companies and organizations operating in the US capital market due to its powers, the regulations of the FASB are binding on them.

The FASB is organized by the private law foundation Financial Accounting Foundation , which, like the FASB, is based in Norwalk , Connecticut . The foundation is responsible for overseeing, organizing and funding the FASB. The FASB is essentially funded by levies from all companies that use the US capital market. The fee is based on the company's market capitalization. The statutory duty was created by the Sarbanes-Oxley Act .

The FASB consists of five full-time members who serve on the board for two to five years. They are supported by more than 60 employees. They are also advised by the Financial Accounting Standards Advisory Council (FASAC), a body made up of CEOs, CFOs and partners of accounting firms. The Emerging Issues Task Force (EITF) is also a body that supports the FASB.

Prior to 2009, a large number of the standards, interpretations and pronouncements developed by various authorized accounting bodies, including the FASB, were recognized as US GAAP. In 2009, the FASB selected the individual regulations it considered relevant, systematized them and summarized them in the Accounting Standards Codification (FASB ASC). It is the sole source of FASB-authorized US GAAP.

In addition to the FASB, the Governmental Accounting Standards Board (GASB), an accounting body organized under private law under the umbrella of the Financial Accounting Foundation, develops US GAAP for accounting for the states and cities and municipalities in the USA.

See also

Other accounting bodies:

Web links

Individual evidence

  1. ↑ a b See the FASB website
  2. ↑ Recognition of the FASB by the SEC (English)
  3. ^ Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979
  4. ↑ Barry J. Epstein, et al. a .: Wiley GAAP 2010: Interpretation and Application of Generally Accepted Accounting Principles , 8th edition, Verlag John Wiley & Sons, Hoboken NJ 2009, p. 3
  5. ↑ Accounting Standards Codification: Notice to Constituents (v 3.0) (English)