Fasb

FASB

The Financial Accounting Standards Board (FASB) is an organization that provides minimum accounting standards for financial information in the private sector. The FASB creates and improves the standards and guidelines of financial accounting and reporting. The FASB standards guide and educate the public, including issuers, auditors, and users of financial information; it assists with the efficient functioning of the economy. Investors, creditors, and suppliers to mention a few rely on credible, transparent, and comparable financial information to make solid investments and credit decisions. To sustain its mission, the FASB strives to increase the usefulness of financial reporting with focus on the core elements of reliability and on the qualities of comparability and consistency, keep current standard to stay abreast with methods of business endeavors and evolution in the economic climate, consider without delay significant areas of deficiency in terms of financial reporting that could be addressed through the standardization process, promote international convergence accounting standards along with improving the quality of financial reporting, and improve overall understanding of the intent and purposes of information the financial reports contain. The FASB is part of a larger structure that is autonomous and independent of all business and professional organizations. It actively elicits insights of its many constituencies on accounting issues. The “due process” procedures and activities, established by the Board, are open to public participation and observation. The Board adheres to certain precepts in the manner of how it conducts its activities. They include:

To be objective in its decision making and to ensure as much as possible, the neutrality of information resulting from its standards.

To weigh carefully the views of its constituents in developing standards and concepts.

To promote standards only when the costs is less than...