Financial Accounting Standards Board (FASB) Definition | Business Dictionaries from AllBusiness.com
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Business Definition for: Financial Accounting Standards Board (FASB)
Financial Accounting Standards Board (FASB)

www.fasb.org) nongovernmental body with the authority to promulgate Generally Accepted Accounting Principles (GAAP) and reporting practices. These are published in the form of FASB Statements. Practicing CPAs are required to follow the FASB pronouncements in their accounting and financial reporting functions. The FASB is independent of other companies and professional organizations. The american institute of certified public accountants (AICPA) and the Securities and Exchange Commission (SEC) officially recognize the Statements issued by he Financial Accounting Standards Board. The FASB was established in 1973 to succeed the Accounting Principles Board (APB).

See also Financial Accounting Foundation (FAF)
Financial Accounting Standards Board (FASB)

independent board responsible for establishing and interpreting generally accepted accounting principles. It was formed in 1973 to succeed and continue the activities of the Accounting Principles Board (APB). FASB standards are officially recognized as authoritive by the Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants. They arise from consulation of a Financial Accounting Standards Advisory Council (FASAC) made up of more than 30 members who are broadly representative of preparers, auditors, and users of financial information, and from recommendations of task forces established by the FASAC, such as the Emerging Issues Task Force (EITF) and the Derivatives Implementation Group. As this is written, the FASB standards are represented by statements numbered 1 through 154. Summaries of the statements are available on the Internet at www.fasb.org/st. Examples of statements are:

FASB 154 changes accounting rules relating to restatement .

FASB 153 addresses issues of cross-border accounting consistency and accounting for nonmonetary exchanges.

FASB 149 amends and clarifies FASB 133 rules on derivatives and hedging activities.

FASB 148 addresses disclosure about methods of accounting for stock-based employee compensation.

FASB 143 requires recognition of liability for asset retirement conditional on a future event.

FASB 142 issued June, 2001 eliminated the amortization of goodwill.

FASB 133 issued June 1998 established accounting and reporting standards for derivatives and for hedging activities. It requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. It states conditions required for treating derivatives as hedges.

FASB 130 issued June 1997 establishes standards for reporting and display of comprehensive income and its components (revenues, expenses, gains, and losses) in a full set of general purpose financial statements. This statement requires that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements.

FASB 128 simplifies the standards for computing earnings per share and makes them comparable to international EPS standards. It replaces the presentation of primary EPS with a presentation of basic EPS. It also requires dual presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation.

See also Generally Accepted Accounting Principles (GAAP)
Financial Accounting Standards Board (FASB)

seven member self-regulatory board, based in Norwalk, Connecticut, that sets accounting rules for certified public accountants. Organized in 1973, its Statements of Financial Accounting Standards are the basis for Generally Accepted Accounting Principles .

Financial Accounting Standards Board (FASB)

independent board responsible for establishing and interpreting Generally Accepted Accounting Principles (GAAP) . It was formed in 1973 to succeed and continue the activities of the Accounting Principles Board (APB).

Financial Accounting Standards Board (FASB)

group that, with the exception of the government, establishes the standards for all financial accounting and reporting for the various entities in the United States. The standards enable comparability and consistency for financial statements among companies. The Securities and Exchange Commission (SEC) requires that all SEC registrants adhere to the FASB Standards when reporting financial information. The SEC also requires that members of the American Institute of Certified Public Accountants (AICPA) adhere to the FASB requirements when reporting financial data. The FASB is under the control of the Financial Accounting Foundation that provides it with financial support. The accounting firms, corporations, and others who utilize the information lend the financial support. An appointed advisory task force of outside experts representing the various views of auditors, preparers, and users review projects. With the help of the FASB staff, the task force issues a statement concerning the actual standards by which to abide, their effective date, research leading to the conclusions, and the logic upon which the conclusions are based.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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