The Financial Accounting Standards Board

Question

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The Financial Accounting Standards Board (FASB) is appointed by the Financial Accounting Foundation and is responsible for establishing financial accounting and reporting standards. Statements on Auditing Standards are issued by the Auditing Standards Board, which is a different body from FASB. The Accounting Principles Board was also a previous standard-setting body, but it no longer exists. FASB operates independently of the Securities and Exchange Commission (SEC), but its standards are recognized by the SEC and used in the preparation of financial statements for publicly-traded companies.