What is the Council for Financial Accounting Standards?

The Council for Financial Accounting Standards (FASB) is a private sector, a non -profit organization responsible for the development and maintenance of generally accepted accounting principles (GAAP). FASB started in 1973 and is recognized by the US Securities and Exchange Commission (SEC) and the US Institute for Certified Public Accountant (AICPA) as the manager of the United States accounting standards. While the Council for Financial Accounting Standards is an independent organization, it uses several other groups or foundations to advise it on the current topics of accounting and selected members of the Board of Directors.

Advisory Board for Financial Accounting Standards (Fasac) is responsible for FASB consulting in current or new financial and accounting situations that must be reviewed. Fasac members include CEO, financial officials, leadership partners of public accounting companies, Executive Directors from professional organizations and academic analysts from the US. These individuals meet and discuss the treatment or application of GAAPin the business environment and bring any technical issues or problems before the Board of Directors for Financial Accounting Standards. Fasac also helps FASB to maintain active presence in the business environment in the current application of accounting principles and how GAAP is currently applied by accountants.

In addition to Fasac Counseling Services, the Financial Accounting Foundation (FAF) Foundation (FAF) helps the Council for Financial Standards. The FAF is an independent organization of the private sector responsible for the supervision and management of the Council of Finance for Financial Accounting Standards. The FAF is also responsible for the selection of members of the FASB Board and to protect its private independence from the business environment.

FASB currently uses five members of the Board of Directors to monitor their internal businesses and accounting procedures. Members of the Board of Directors are selected to serve a five -year term with another possible five -year functional OBDOBími, based on the performance of a member of the Board of Directors in the early five -year period. Members of the Board of Directors are responsible for determining the FASB review process. The Council for Financial Accounting Standards usually uses accounting or technical accounting problems.

Members of the Board of Directors also decide which accounting questions will be published to individuals in the area of ​​private sector accounting or public accounting companies at the opening of the open discussion process. This open process allows public accounting companies or other individuals to the accounting industry that FASB adds to the use of the current GAAP principles and the need for other accounting instructions. If FASB determines a new interpretation, the main or accounting instructions are actually necessary, take the formal process of issuing the exposure design and its transfer by the process of codification for the GAAP.