Facts About FAF
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;
- Selecting the members of the standard-setting Boards and Advisory Councils;
- 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; and
- Protecting the independence and integrity of the standard-setting process.
FAF MISSIONTo establish and improve financial accounting and reporting standards, fostering financial reporting that provides decision-useful information to investors and other users of financial reports. This mission is accomplished through a comprehensive and independent standard-setting process that encourages broad participation, objectively considers all stakeholder views, and is subject to appropriate oversight and accountability.
- 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.
- Private Company Council (PCC)
The PCC determines alternatives to existing nongovernmental U.S. GAAP to address the needs of users of private company financial statements, based on criteria mutually agreed upon by the PCC and the FASB. Before being incorporated into U.S. GAAP, PCC recommendations will be subject to a FASB endorsement process. The PCC also serves as the primary advisory body to the FASB on the appropriate treatment for private companies for items under active consideration on the FASB’s technical agenda.