Fasb Essay

1144 WordsMay 17, 20115 Pages
Running head: FASB (<= 50 CHARACTERS) FASB April 11, 2011 FASB The FASB makes and enforces the generally accepted accounting principles in the United States. The FASB is responsible for selecting its members, ensuring funding, and general oversight. This paper will go into details about what the FASB does as well as what other groups are entailed within the FASB. There will also be examples of real life experiences in which the FASB has influenced or made final decisions. The FASB is a vital organization for the financial accounting and maintains generally accepted accounting principles. FASB stands for Financial Accounting Standards Board. The main purpose of the FASB is to develop generally accepted accounting principles in the United States of the GAAP. FASB was established in 1973 by the Securities and Exchange Commission. It replaced the Accounting Principles Board and the Committee on Accounting Procedure of the American Institute of Certified Public Accountants. Unless amended or superseded by the FASB, previous standards set forth by prior boards have been maintained as generally accepted accounting principles. FASB is a private not for profit organization and is not an entity of the United States government. “The mission of the FASB is to establish and improve standards of financial accounting and reporting that foster financial reposting by nongovernmental entities that provides decision-usefulness information to investors and other users of financial reports” (“Facts about FASB,” 2011). The FASB gets financing by companies who pay fees to the Securities and Exchange Commission. Decisions made by FASB can be overruled by the Securities and Exchange Commission. People who utilize the information provided by the FASB include issuers, auditors, and current and potential investors. FASB board members are appointed by the Foundation’s

More about Fasb Essay

Open Document