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What is FASB (Financial Accounting Standards Board)
FASB (Financial Accounting Standards Board) is a government organization creating accounting standards in the U.S.

FASB (Financial Accounting Standards Board) is a government organization creating accounting standards in the U.S.

The history of accounting standards in the United States dates back to the interwar period, the era of the Great Depression. After the stock market crash of 1929 it was necessary to restore public confidence in capital markets. Therefore, Congress pushed through both law establishing the SEC (Securities and Exchange Commission) and the law on clear rules and information available to investors on the capital market. Congress commissioned the SEC to supervise compliance with these laws (First president of SEC was elected Joseph Kennedy - father of later U.S. President John F. Kennedy). Financial statements are according to the law also an important information for investors, shareholders and creditors. In the USA, accounting procedures and standards are not, however, directively determined by law. It was therefore necessary to create such common rules and standards that would unite the view on the companies. Since 1973, the creation of these standards was entrusted with the FASB - Financial Accounting Standards Board. FASB is responsible for the financial accounting standards for private companies, including commercial and non-profit companies. These standards are called GAAP (Generally Accepted Accounting Principles).

Since 1984, the U.S. also created standards in the financial accounting and reporting for public administration bodies. GASB (Governmental Accounting Standards Board) is the office responsible for it.

Equivalent organization for the creation of accounting standards in the environment of the European Union is the IASB (International Accounting Standards Board). These are the international accounting standards IAS/IFRS.

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Last update: 27.06.2013

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