The Financial Accounting Standards Board is responsible for
What is the FASB?The FASB is an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the US, following the Generally Accepted Accounting Principles (GAAP). FASB sets and makes updates to GAAP accounting, a common set of accounting principles, standards, and procedures that companies must follow when they report on their financial standing. US GAAP is adopted by the SEC. Show
FASB’s mission is to “establish and improve financial accounting and reporting standards, to provide useful information to investors and other users of financial reports and educate stakeholders on how to most effectively understand and implement those standards.” Why is FASB important?The SEC recognizes FASB as the authority for setting accounting standards for public companies. Its main goal is to give public companies the ability to establish and improve the accounting methods used to prepare financial statements. The accounting standards developed by FASB directly impact how businesses report items such as inventory costs, debt, assets, revenue, stockholder’s equity, and taxation. FASB also allows businesses to choose how they depreciate assets on their financial statements, and they must disclose which method is used and use it consistently for the life of the assets. FASB requires companies in the same industry to report revenue in the same manner. This helps the public compare each company’s financial statements with the knowledge that the same reporting standards are being used. How does Clearwater Analytics help?Clearwater constantly monitors upcoming changes to regulatory guidance and applies them to the system. That allows your team to analyze data rather than implement the changes. Clearwater Analytics allows its users to receive automatically generated FASB 115, 133, and 157 reports at the click of a mouse. Clearwater accounts for 15+ audited local GAAP rules (with the ability to add Nth basis accounting) and 100+ asset classes. With our intuitive and user-friendly platform, users can easily customize disclosure reports and other standard balance sheets, income statements, and roll-forward reports. With Clearwater, you can group data on multiple levels, write formulas, pivot, and add or remove data points. Accounting information can be pulled into varying types of reports and tied to risk and performance information, allowing for a complete picture of your investments. Learn more about how Clearwater Analytics can help with investment accounting and reporting by scheduling time to speak directly to an expert. Recommended textbook solutionsIntermediate Accounting14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield 1,471 solutions
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Fundamentals of Financial Management14th EditionEugene F. Brigham, Joel F Houston 845 solutions BackgroundSince 1973, the Financial Accounting Standards Board (FASB) has been the designated organisation in the private sector for establishing standards of financial accounting and reporting in the United States of America. Those standards govern the preparation of financial reports. They are officially recognised as authoritative by the Securities and Exchange Commission (Financial Reporting Release No. 1, Section 101) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). The stated mission of the Financial Accounting Standards Board is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. FASB CodificationEffective 1 July 2009, the FASB reorganised its standards into the FASB Codification. The Codification is an online research system representing the single source of authoritative nongovernmental US GAAP. Subscriptions to the FASB Codification are available in two ways:
The FASB Codification may be accessed at http://asc.fasb.org/. Standards as issued prior to codificationThe FASB standards that were superseded by the Codification are still available on line, without charge, here. Contact informationFinancial Accounting Standards Board What is the purpose of the Financial Accounting Standards Board quizlet?The Financial Accounting Standards Board (FASB) is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public's interest.
Who is responsible for accounting standards?The Financial Accounting Standards Board (FASB) sets accounting rules for public and private companies and nonprofits in the United States. A related organization, the Governmental Accounting Standards Board (GASB), sets rules for state and local governments.
Which of the following is a responsibility of the FASB?The FASB is responsible for identifying financial accounting issues, conducting research, and resolving them by issuing new accounting standards.
What is the accounting standard board?The Accounting Standards Board (AcSB) is an independent body with the authority to establish accounting standards for use by all Canadian entities outside the public sector.
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