Organized in 1972, the Financial Accounting Foundation (FAF) is the independent, private-sector organization with responsibility for:
- Establishing and improving financial accounting and reporting standards;
- Educating constituents about those standards;
- The oversight, administration, and finances of its standard-setting Boards, the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB), and their Advisory Councils;
- Selecting the members of the standard-setting Boards and Advisory Councils; and
- Protecting the independence and integrity of the standard-setting process.
The Foundation is a non-stock Delaware corporation that operates exclusively for charitable, educational, scientific, and literary purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. The Foundation, FASB, and GASB are located in Norwalk, CT
FAF Organizational Structure
- Financial Accounting Standards Board (FASB)
Established by the FAF in 1973, the FASB has been delegated the authority to establish standards of financial accounting and reporting for private-sector entities, including business and not-for-profit organizations. FASB standards are recognized as generally accepted and authoritative.
- Governmental Accounting Standards Board (GASB)
Organized by the FAF in 1984, the GASB has been delegated the authority to establish standards of financial accounting and reporting for state and local governmental entities. GASB pronouncements are recognized as generally accepted and authoritative.
- Financial Accounting Standards Advisory Council (FASAC)
Comprised of FASB constituents, the Financial Accounting Standards Advisory Council consults with the FASB on technical issues, project priorities, and other matters likely to concern the FASB.
- Governmental Accounting Standards Advisory Council (GASAC)
Comprised of GASB constituents, the Governmental Accounting Standards Advisory Council consults with the GASB on technical issues, project priorities, and other matters likely to concern the GASB.
- The capital markets and government are comprised of many participants with competing demands, requirements, and proprietary interests. As independent entities without a political or commercial stake in a particular outcome, the FAF’s standard-setting Boards, the FASB and the GASB, provide objectivity and integrity to our country’s financial reporting system.
- Independence is fundamental to the standard-setting Boards’ activities because their work is intended to provide investors and other users of financial reports with the most accurate way to measure and analyze underlying economic transactions and realities.
- The FASB and GASB engage in a thorough, competent, objective, and open due process which encourages active and collaborative involvement from all interested parties. FAF's standard-setting Boards provide numerous channels for interested party participation and carefully consider all viewpoints.
- This rigorous due process includes public Board meetings, the issuance of exposure drafts for all proposed standards, the opportunity to comment, and public roundtable discussions, and more.