Question

Is the FASB responsible for government accounting? if not, why not? if so why?

What are the two primary sets of financial statements? why are there two sets? what is the difference with respect to the needs of key stakeholders?

Answer 1

The Financial Accounting Standards Board is a private, non-profit organization standard setting body whose primary purpose is to establish and improve generally accepted accounting principles within the United States in the public's interest.

This article is a list of Financial Accounting Standards Board (FASB) pronouncements, which consist of Statements of Financial Accounting Standards ("SFAS" or simply "FAS"), Statements of Financial Accounting Concepts, Interpretations, Technical Bulletins, and Staff Positions, which together present rules and guidelines for preparing, presenting, and reporting financial statements within the United States according to generally accepted accounting principles ("GAAP") in the United States Of America, of which this list makes up a substantial part.

The Mission of the FASB

The stated mission of the FASB is to establish and improve financial accounting and reporting standards and to provide useful information to investors and other people who use financial reports. The FASB seeks to actively achieve this mission by facilitating an open and independent reporting process that allows broad participation from company stakeholders. The mission and activity of the FASB are overseen by the Financial Accounting Foundation’s (FAF) Board of Trustees.

As of 2016, the current and primary priority of the FASB is to integrate U.S. GAAP with the International Financial Reporting Standards (IFRS). This allows for more transparent and translatable financial practices internationally. Specifically, the FASB aims to address the differences in reporting between revenue recognition, leases, financial instruments and insurance.