Financial Accounting Foundation

Updated on Dec 17, 2024

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Founded 1972

Standard poor s backs the financial accounting foundation

The Financial Accounting Foundation (FAF) is located in Norwalk, Connecticut. It was organized in 1972 as a non-stock, Delaware Corporation. It is an independent organization in the private sector, operating with the goal of ensuring objectivity and integrity in financial reporting standards.

The foundation is responsible for [1]:

Establishing and improving financial accounting and reporting standards;

Educating constituents about those standards;

The oversight, administration, and finances of its standard-setting Boards, the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB), and their Advisory Councils;

Selecting the members of the standard-setting Boards and Advisory Councils; and

Protecting the independence and integrity of the standard-setting process.

FAF operates four branches in its organization:

FASB

GASB

The Financial Accounting Standards Advisory Council (FASAC). This branch is composed of FASB constituents and consults with FASB on issues.

The Governmental Accounting Standards Advisory Council (GASAC). This branch is composed of GASB constituents and consults with GASB on issues.

The FAF Board of Trustees is made up of members from constituent organizations having interest in financial reporting. These constituent organizations include:

American Accounting Association

American Institute of Certified Public Accountants

CFA Institute

Financial Executives International

Government Finance Officers Association

Institute of Management Accountants

National Association of State Auditors, Comptrollers and Treasurers

Securities Industry and Financial Markets Association

There are currently five officers and fourteen trustees. The FAF operates seven committees:

the Executive Committee

the Development Committee

the Appointments and Evaluations Committee