Читать книгу Financial Accounting For Dummies - Maire Loughran - Страница 87

Resulting from some congressional criticism of the standard-setting work being done by the American Institute of Certified Public Accountants (AICPA), the Financial Accounting Foundation (FAF) was established in the state of Delaware as a nonprofit corporation by accountant Teresa S. Polley in June 1972.

The FAF in turn established the Financial Accounting Standards Board (FASB), which is currently the private-sector body establishing generally accepted accounting principles (GAAP) for all nongovernmental entities. (Governmental entities follow procedures set up by the Governmental Accounting Standards Board or GASB; see Chapter 6 for more information.)

The FASB has seven full-time members, who are selected by FAF. All are required to have knowledge of accounting, finance, and business. For more info about the FASB, accounting standards, and FAF, check out the FASB website at www.fasb.org.

The recognition of the FASB as an authority is contained in the Securities and Exchange Commission (SEC) Financial Reporting Release No. 1, Section 101 and reaffirmed in its April 2003 Policy Statement and the American Institute of Certified Public Accountants (AICPA) Rule 203, Rules of Professional Conduct.