Financial Accounting Standards Board
Definition of Financial Accounting Standards Board as it relates to Business, Accounting Principles, Accounting Standards
The Financial Accounting Standards Board (FASB) is an independent, private-sector organization responsible for establishing financial accounting and reporting standards for public and private companies and not-for-profit organizations in the United States. Its mission is to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports. The principles and standards set forth by FASB are widely accepted and used in the preparation and presentation of financial statements, providing a common language for businesses and organizations to communicate their financial performance and position. These standards cover various aspects of accounting, including revenue recognition, leases, stock-based compensation, and more, with the goal of promoting transparency, consistency, and comparability in financial reporting.
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