About the FAF

Established in 1972, the Financial Accounting Foundation (FAF) is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut responsible for the oversight, administration, financing, and appointment of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).

The FAF comprises the FAF Board of Trustees, two standard-setting Boards (the FASB and the GASB), and the FAF management team.

The FASB and GASB establish and improve financial accounting and reporting standards—known as Generally Accepted Accounting Principles, or GAAP—for public and private companies, not-for-profit organizations, and state and local governments in the United States. Both organizations set high-quality standards through a process that is robust, comprehensive, and inclusive.

The FASB is responsible for standards for public and private companies and not-for-profit organizations.

The GASB is responsible for standards for state and local governments.

The FAF 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.

Financial information on the FAF can be found here.

FAF MISSION


The collective mission of the FASB, GASB, and FAF is to establish and improve financial accounting and reporting standards to provide useful information to investors and other users of financial reports and to educate stakeholders on how to most effectively understand and implement those standards.

The FASB, the GASB, the FAF Trustees, and the FAF management each contributes to the collective mission according to its specific role:
  • The FASB and the GASB are charged with setting the highest-quality standards through a process that is robust, comprehensive, and inclusive.
  • The FAF management is responsible for providing strategic counsel and services that support the work of the standard-setting Boards.
  • The FAF Trustees are responsible for providing oversight and promoting an independent and effective standard-setting process.


For more information on the FAF’s vision, mission, core values, and strategic goals, please read the Strategic Plan.

FAF TRUSTEES


The FAF Board of Trustees comprises 14–18 members from varied backgrounds—users, preparers, and auditors of financial statements; state and local government officials; academics; and regulators.

The FAF directs the effective, efficient, and appropriate stewardship of the FASB and GASB in carrying out their missions, selects and appoints FASB and GASB members and their advisory councils, oversees the Boards’ activities and due process, and promotes and protects the independence of the Boards.

The Trustees participate on committees to provide oversight and review of key areas of governance including:
  • Appointments and Evaluations
  • Audit and Compliance
  • Executive
  • Finance and Compensation
  • Private Company Review
  • Standard-Setting Process Oversight.

STANDARD-SETTING BOARDS


Financial Accounting Standards Board (FASB)
Established in 1973, the FASB is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). The FASB is recognized by the Securities and Exchange Commission (SEC) as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports. The FAF supports and oversees the FASB.

Governmental Accounting Standards Board (GASB)
Established in 1984, the GASB is the independent, private-sector organization based in Norwalk, Connecticut, that establishes accounting and financial reporting standards for U.S. state and local governments that follow Generally Accepted Accounting Principles (GAAP). These standards are recognized as authoritative by state and local governments, state Boards of Accountancy, and the American Institute of CPAs (AICPA). The GASB develops and issues accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to taxpayers, public officials, investors, and others who use financial reports. The FAF supports and oversees the GASB.

COUNCILS


In order to ensure the broadest discussion of critical accounting and financial reporting issues, the FAF also oversees:
  • Financial Accounting Standards Advisory Council (FASAC): The primary function of FASAC is to advise the FASB on issues related to projects on the FASB’s agenda, possible new agenda items, project priorities, procedural matters that may require the attention of the FASB, and other matters as requested by the chair of the FASB.
     
  • Governmental Accounting Standards Advisory Council (GASAC): The GASAC is responsible for consulting with the GASB on technical issues on the GASB's agenda, project priorities, matters likely to require the attention of the GASB, selection and organization of task forces, and such other matters as may be requested by the GASB or its chair.
     
  • Private Company Council (PCC): The PCC is the primary advisory body to the FASB on private company matters. The PCC uses the Private Company Decision-Making Framework to advise the FASB on the appropriate accounting treatment for private companies for items under active consideration on the FASB’s technical agenda. The PCC also advises the FASB on possible alternatives within GAAP to address the needs of users of private company financial statements. Any proposed changes to GAAP are subject to endorsement by the FASB.

POST-IMPLEMENTATION REVIEW


The PIR process was initiated by the FAF Board of Trustees as part of the FAF’s oversight responsibilities for its two standard-setting bodies—the FASB and the GASB. The PIR process is intended to assist the Trustees with their ongoing efforts to evaluate the effectiveness of the standard-setting process for both the FASB and the GASB.

More information on the Post-Implementation Review can be found here.

ADDITIONAL INFORMATION


For further information about the FAF, including FAF Board of Trustee meeting schedules, access the FAF website at www.accountingfoundation.org.