Purpose and background of FASB

The Financial Accounting Standards Board (FASB) is an organization which institutes the standards for financial accounting and reporting and sets up accounting principles. The FASB is a private organization established in 1973 with the purpose of improving the criterion of financial reporting. The FASB has a mission, an agenda, and follows and open decision-making process. The mission of the FASB can be found on its website: "to establish and improve standards of financial accounting and reporting …

…the entire decision-making process to be "open" (FASB, 2005). The FASB was instituted to maintain and improve accounting standards and financial reporting. To be effective they must be objective in their decision making, carefully weigh the views of their advisors, publicize standards only if benefits exceed costs, institute changes while minimizing disruption, and continually review effects of past decisions (FASB, 2005). References: Financial Accounting Standards Board (FASB). (2005). Facts about FASB. Retrieved from http://www.fasb.org/facts