What is FASB?

What is FASB?

• A. An independent, full-time US organization dedicated to developing financial accounting standards.
• B. A government body that enforces financial reporting.
• C. The same as the IASC.
• D. A private auditing firm.

Answer: (A)

FASB stands for Financial Accounting Standards Board. It is the independent, private-sector, full-time organization in the United States that develops and issues financial accounting standards used for US GAAP. It isn’t a government body that enforces reporting, nor is it a private auditing firm; its job is to set the standards, while enforcement and auditing are handled by other entities like the SEC or PCAOB. It’s also not the same as the IASC (the International Accounting Standards Committee, which relates to international standards now maintained by the IASB). So the best description is that FASB is an independent U.S. organization dedicated to developing financial accounting standards.

FASB stands for Financial Accounting Standards Board. It is the independent, private-sector, full-time organization in the United States that develops and issues financial accounting standards used for US GAAP. It isn’t a government body that enforces reporting, nor is it a private auditing firm; its job is to set the standards, while enforcement and auditing are handled by other entities like the SEC or PCAOB. It’s also not the same as the IASC (the International Accounting Standards Committee, which relates to international standards now maintained by the IASB). So the best description is that FASB is an independent U.S. organization dedicated to developing financial accounting standards.