Examples of Financial Accounting Standards Board (FASB) in the following topics:
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- The Financial Accounting Standards Board (FASB) is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public's interest.
- In 1959, the Accounting Principles Board (APB) was formed to meet the demand for more structured accounting standards.
- The APB issued pronouncements on accounting principles until 1973, when it was replaced by the Financial Accounting Standards Board (FASB).
- The FASB's mission is "to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. "
- While the AICPA set the professional standards for the professional conduct of accountants, it plays no role in setting the standards for financial accounting.
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- In order to prepare the financial statements, it is important to adhere to certain fundamental accounting concepts.
- Financial statements are prepared according to agreed upon guidelines.
- The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that
- In order to prepare the financial statements, it is important to adhere to certain fundamental accounting concepts.
- This is a diagram of details for principles, concepts, and constraints within the field of Financial Accounting.
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- Accrual accounting does not record revenues and expenses based on the exchange of cash, while the cash-basis method does.
- An expense account is debited and a cash or liability account is credited.
- The cash method of accounting recognizes revenue and expenses when cash is exchanged.
- The Financial Accounting Standards Board (FASB), which dictates accounting standards for most companies—especially publicly traded companies—discourages businesses from using the cash model because revenues and expenses are not properly matched.
- For example, a landscape gardener with clients that pay by cash or check could use the cash method to account for her business' transactions .
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- Specifically in accounting, the rule and standards set the the nature, function and limits of financial accounting and financial statements.
- Prior to 1929, no group—public or private—was responsible for accounting standards.
- The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S.
- The Financial Accounting Standards Board (FASB) is a private, not-for-profit organization whose mission is "to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. " Created in 1973, FASB replaced the Committee on Accounting Procedure (CAP) and the Accounting Principles Board (APB) of the American Institute of Certified Public Accountants (AICPA).
- FASB's Conceptual Framework, a project begun in 1973 to develop a sound theoretical basis for the development of accounting standards in the United States.
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- Corporations report financial statements following Generally Accepted Accounting Principles (GAAP).
- The rules about how financial statements should be put together are set by the Financial Accounting Standards Board (FASB).
- Standardized rules ensure, to some extent, that a firm's financial statements accurately represent the company's financial status.
- The income statement (also called the "profit and loss statement"): This gives an account of what the company sold and spent in the year.
- This is necessary because accounting sometimes deals with revenues and expenses which are not real cash, such as accounts receivable and accounts payable.
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- "Financial accountancy is governed by both local and international accounting standards".
- Also, note that financial accounting reports must be prepared in accordance with national and international accounting standards.
- In the United States the Financial Accounting Standards Board (FASB) has been the designated independent entity for established accounting reporting standards since 1973.
- You can find more information on FASB on their website at http://www.fasb.org .
- Since so many organizations are global in scope, a relatively new entity, the International Accounting Standards Board (IASB) has come upon the scene.
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- Generally Accepted Accounting Principles (GAAP) is the standard framework for financial accounting used in any given jurisdiction.
- Generally Accepted Accounting Principles (GAAP) refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards.
- Currently, the Financial Accounting Standards Board (FASB) establishes generally accepted accounting principles for public and private companies, as well as for non-profit organizations.
- In 1973, the Accounting Principles Board was replaced by the FASB under the supervision of the Financial Accounting Foundation with the Financial Accounting Standards Advisory Council serving to advise and provide input on the accounting standards.
- Circa 2008, the FASB issued the FASB Accounting Standards Codification, which reorganized the thousands of US GAAP pronouncements into roughly 90 accounting topics.
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- These principles are set forward by the FASB, or the Financial Accounting Standards Board.
- Its mission is "to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. " To achieve this, FASB has five goals:
- Consider promptly any significant areas of deficiency in financial reporting that might be improved through standard setting.
- Promote international convergence of accounting standards concurrent with improving the quality of financial reporting.
- Explain the role Generally Accepted Accounting Principles plays in the preparation of financials statements
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- Many countries use or are moving towards using the International Financial Reporting Standards (IFRS), which were established and maintained by the International Accounting Standards Board (IASB).
- They are progressively replacing the many different national accounting standards.
- The IAS were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC).
- During its first meeting the new Board adopted existing IAS and Standing Interpretations Committee standards (SICs).
- The IASB and FASB frameworks are in the process of being updated and converged.
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- Income statement is a company's financial statement that indicates how the revenue is transformed into the net income.
- Income statement, also referred to as profit and loss statement (P&L), revenue statement, statement of financial performance, earnings statement, operating statement or statement of operations, is a company's financial statement that indicates how the revenue (cash or credit sales of products and services before expenses are taken out) is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or "bottom line").
- Larger entities use the accrual basis, which is also the recommended method by the FASB.
- Some numbers vary based on the accounting methods used (e.g. using FIFO or LIFO accounting to measure inventory level).
- Guidelines for statements of comprehensive income and income statements of business entities are formulated by the International Accounting Standards Board and numerous country-specific organizations, for example the FASB in the U.S.