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Financial Accounting Standards Board (FASB)

The Financial Accounting Standards Board (FASB) is a subsidiary of the Financial Accounting Foundation (FAF), an independent exempt organization. The FASB sets standards for financial accounting and reporting in the United States, a set of guidelines that constitutes an important component of generally accepted accounting principles (GAAPs). Although the Public Company Accounting Oversight Board (PCAOB) has superseded the FASB in formal standard-setting authority over the profession since the enactment of the Sarbanes-Oxley Act in 2002, the FASB continues to wield significant influence as a private-sector advisory body.

Historical Background

The Securities Act of 1933 provided for federal regulation of financial accounting and reporting for public companies and, by extension, for the practice of public accounting in the United States, and it invested this authority in the Federal ...

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