Define: Fasb Statement

FASB Statement refers to the Financial Accounting Standards Board’s (FASB) official pronouncements that provide guidance on accounting and financial reporting standards in the United States.

The purpose of FASB Statement is to establish and improve accounting principles and standards to ensure consistency, transparency, and comparability in financial reporting.

FASB Statements are issued on an as-needed basis, typically when there is a need to address emerging issues or update existing accounting standards.

While FASB Statements are not directly enforceable by law, they are widely recognized and followed by companies, auditors, and regulators. Non-compliance with FASB Statements can have legal and regulatory consequences.

FASB Statements can be challenged or changed through due process, which involves public exposure drafts, comment periods, and deliberations by the FASB board. However, any changes require careful consideration and consensus among stakeholders.

FASB Statements are publicly available on the FASB’s official website (www.fasb.org) and can be accessed for free. They are also available in various accounting textbooks and professional accounting databases.

FASB Statements generally apply to all companies that prepare financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in the United States. However, certain exemptions or alternative accounting methods may be available for smaller or specialized entities.

In some cases, other regulatory bodies may issue specific rules or regulations that supersede certain aspects of FASB Statements. However, such instances are relatively rare, and FASB Statements generally serve as the primary source of accounting standards in the U.S.

FASB Statements are specific to the United States and are not directly applicable internationally. However, their principles and concepts often align with international accounting standards, such as those issued by the International Financial Reporting Standards (IFRS) Foundation.

To stay updated on new FASB Statements, you can subscribe to the FASB’s email alerts, follow their official social media accounts, or regularly visit their website for the latest news and updates. Additionally, professional accounting organisations and publications often provide summaries and analysis of new FASB Statements.