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Financial Accounting Standards Board

THE FINANCIAL Accounting Standards Board, which is often simply referred to as the FASB, is responsible for developing improved standards related to financial accounting and reporting. FASB is believed to be an important part of the accounting process because of the very nature of the economy and the stock market; this belief stems from the fact that many investors rely upon the financial statements issued from a company when determining which stocks to purchase, and an opinion from the FASB carries the weight of law.

Since 1973, the FASB has maintained the absolute authority to regulate standards for the accounting industry. While the Securities and Exchange Commission (SEC) has been granted statutory authority to make decisions concerning accounting standards, both the SEC and the American Institute ...

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