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The Financial Accounting Standards Board, the FASB, is a private not-for-profit organization. It is made up by a seven-member board of accounting professionals who work to determine the financial accounting reporting standards in the United States. The FASB identifies and resolves any type of accounting issue in financial accounting reporting in a timely manner. In 1973, when the CAP (Committee on Accounting Procedure) was replaced, the SEC (Securities Exchange Commission) made the FASB responsible for setting accounting standards for United States business holders. The FASB has to make sure that all the standards are up to date and fitting with the economy. The FASB is independent from other organizations and businesses in order to prevent corruption. All the decisions are properly analyzed, discussed, reasoned and eventually agreed upon or approved by the FASB and then the SEC.

The FASB are working on developing common Conceptual Framework. The Act’s ultimate goal is to develop standards that are consistent and internationally covered. Conceptual Framework measures attributes used to report economic transactions. Also, it arranges financial statements, accounting principles in order to correctly present the information in financial statements. The FASB issues several pronouncements in order to create accounting principles. Recently, the FASB is approaching a transformation project with the IFRS in order to expand internationally and insure the quality of the accounting standards.

The FASB’s mission statement is “to establish and improve financial accounting and reporting standards to provide decision-useful information to investors and other users of financial reports.” The board has to consider any significant areas of reporting inconsistency or deficiency and find solutions to improve standard setting. Seven members of the board are required to have no ties with the past organizations or businesses they worked/served at. All of the members need to sign a...