Context before interpretation
Historical frame
- Kind
- organization
- Period
- Established 1972
- Jurisdiction
- United States
The FAF shows that credible standard setting requires governance, appointments, funding, and oversight arrangements in addition to technical accounting expertise.
Reader prompts
Questions to carry forward
- How could funding or appointments affect perceived standard-setter independence?
- Why separate oversight from technical voting?
Claim disciplineEvidence boundaries
- The FAF oversees the standard setters but does not itself issue each accounting standard.
- FASB and GASB have different reporting domains.
The Financial Accounting Foundation (FAF) was established in 1972. It oversees and supports the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB), including board appointments and funding.
The foundation's oversight differs from the boards' technical decisions. FASB develops standards for nongovernmental reporting; GASB develops standards for state and local governmental reporting. When identifying who issued an accounting requirement, distinguish the relevant board from the foundation that oversees it.