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 (GAAP). Although the Public Company Accounting Oversight Board (PCAOB) has superseded the FASB in formal standard-setting authority over the profession since the enactment of the [Page 1403]Sarbanes-Oxley Act in 2002, the FASB continues to wield significant influence as a private sector advisory body.

This entry discusses the historical background of the FASB, breakdowns in the regulatory framework for the accounting profession and the reclamation of federal oversight, the structure of the FASB, and the mission of the FASB.