Historical frame
- Kind
- organization
- Period
- Established 1973
- Jurisdiction
- United States
The board develops accounting requirements through research, public discussion, and review of comments.
Questions to carry forward
- How is an accounting standard different from an audit standard?
- Why should a researcher check effective dates rather than rely on an old summary?
Claim disciplineEvidence boundaries
- FASB is a private-sector standard setter, not a federal agency.
- Not every entity or reporting question falls within FASB standards.
The Financial Accounting Standards Board (FASB) began work in 1973. It establishes accounting standards for nongovernmental entities in the United States. It is a private-sector organization, not a federal agency.
FASB develops standards through a process that includes research, public discussion, and comments on proposals. Its Accounting Standards Codification organizes authoritative nongovernmental US generally accepted accounting principles (GAAP). Governmental accounting standards and applicable securities regulation require separate sources.
Knowing the standard setter's name does not answer a reporting question. Identify the transaction and reporting period, then check the applicable guidance. Accounting standards govern how the company reports; they are not the auditing standards used to examine those reports.