The Financial Accounting Standards Board (FASB) is an independent body of experts responsible for establishing accounting standards for businesses and nonprofits in the United States. Established in 1973 as an Oversight Council, the FASB defines the set of Generally Accepted Accounting Principles (GAAP) that guide the field of accounting, providing a single set of standards to investors, creditors and other external users of financial information.

The Financial Accounting Standards Board is responsible for establishing and improving standards of financial accounting and reporting, which are used in the preparation and issuance of financial statements. The goal of the organization is to ensure that financial statements are consistent, understandable and verifiable for all users of financial information. This includes investors, creditors, and other external users who rely on this information to make decisions.

What sets the FASB apart from other organizations is its emphasis on providing standards that are timeless and easily understood by users. The FASB standards are pragmatic, based on research and experience. To ensure that the standards remain up-to-date, the FASB is continually researching emerging accounting issues and industry trends.

The FASB works closely with the Governmental Accounting Standards Board (GASB), which is responsible for setting standards for public sector accounting. In recent years, the FASB has been working with the International Accounting Standards Board (IASB) to bring standards closer together around the world.

Ultimately, the standards set by the FASB are meant to improve the relevance and clarity of financial reporting, help decision makers make better decisions, and build trust in companies’ financial statements. In doing so, the FASB is playing an important role in ensuring that financial statements are accurate and reliable for everyone.