Fasb

/ˈfæzbi/ noun

Definition

Financial Accounting Standards Board; the independent organization that establishes accounting and financial reporting standards for public and private companies in the United States. It creates the rules known as Generally Accepted Accounting Principles (GAAP).

Etymology

Established in 1973 to replace the Accounting Principles Board after accounting scandals revealed the need for independent standard-setting. Named for its mission to establish standards for financial accounting and reporting that guide preparation of financial reports.

Kelly Says

FASB wields enormous power but operates in fascinating obscurity! Their seemingly technical decisions—like how to account for stock options or lease payments—can shift billions in reported profits across the economy, yet most business leaders barely know who they are until a new rule affects their company.

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