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by wwegal on January 20th, 2009

wwegal

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What is the purpose of the Financial Accounting Standards Board?

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  • by Doggie S on January 20th, 2009

    Doggie S

    Taken from its website:
    http://www.fasb.org/facts/index.shtml#mission

    The mission of the FASB 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.

    Accounting standards are essential to the efficient functioning of the economy because decisions about the allocation of resources rely heavily on credible, concise, transparent, and understandable financial information. Financial information about the operations and financial position of individual entities also is used by the public in making various other kinds of decisions.

    To accomplish its mission, the FASB acts to:

    Improve the usefulness of financial reporting by focusing on the primary characteristics of relevance and reliability and on the qualities of comparability and consistency;

    Keep standards current to reflect changes in methods of doing business and changes in the economic environment;

    Consider promptly any significant areas of deficiency in financial reporting that might be improved through the standard-setting process;

    Promote the international convergence of accounting standards concurrent with improving the quality of financial reporting; and

    Improve the common understanding of the nature and purposes of information contained in financial reports

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