December 6, 2021
These posts are created for those interested in knowing more about what’s happening in and around the world of all things FASB, especially as it is applied to commercial real estate professionals. The Financial Accounting Standards Board is an organization that was specifically created for the sake of improving transparency and consistency across the board when it comes to financial accounting and reporting standards for private companies and non-profit organizations. This organization helps investors, creditors and other shareholders to make more informed decisions based on critical accounting data.
FASB is responsible for establishing and sustaining what is called GAAP, Generally Accepted Accounting Principles. These are principles that must be followed when companies are preparing their financial statements for the quarter and for the business year. These standards take into account a number of inputs including revenue sources and income as well as lease accounting and the presentation of financial statements.
FASB also works with other like-minded organizations so that accounting standards are understood and recognized on both a domestic and international scale. FASB also provides resources to help stakeholders better understand these accounting standards.
Overall, FASB helps to create and sustain accounting standards that are then accepted by companies and nonprofits all around the globe. This organization plays a crucial role when it comes to defining the structure and landscape of financial reporting and ensuring that financial data is transparent, consistent and accurate.