Wꦑhat Is Statement of Financial Accounting Concepts?

The Statement of Financial Accounting Concepts (SFAC) was a document issued by the Financial Accounting Standards Board (FASB) covering broad financial reporting concepts. FASB is the organization that sets down the accounting rules and guidelines that make up ꦕ澳洲幸运5官方开奖结果体彩网:Generally Accepted A💃ccounting Principles (GAAP).

The purpose of the SFAC document is to provide a general overview of accounting concepts, definitions, and ideas. It is seen as a prelude to the 澳洲幸运5官方开奖结果体彩网:Statement of Financial Accounting Stan🎉dards (SFAS).

Both SFAC and SFAS has been superseded by the FASB Accounting Standards Codification, which became effective after September 2009. This codification is now updated𓃲 via Accountin🐻g Standards Updates (ASUs) and FASB Concept Statements.

Un𒈔derstanding Statement of Finᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚancial Accounting Concepts

Setting accounting standards is an extensive process starts with research, public hearings, and public comment and ends with the issuing of a new accountin꧟g standard that then becomes part of GAAP. The SFAC is part of this process in that it is used as a blueprint for the future development of reporting policy and proced💙ures.

In recent years there has been pressure to harmonize accounting standards around the world. The international equivalent of the US-based FASB is the 澳洲幸运5官方开奖结果体彩网:International Accounting Standards Board (IASB). The IASB helps develop standards for countries that require the use of 澳洲幸运5官🧔方开奖结果体彩网:Internation♈al Financial Reporting Standards (IFRS).

FASB and IA💯SB initially hoped to develop⭕ a common set of standards that would be acceptable around the world. But this approach encountered some resistance, and they have settled on a compromise in which the FASB will remain the standard issuer for the United States but endorse IFRS rules and guidelines issued by IASB.

Statement of Financial Accounting Standards

Statement of Financial Accounting Standards, or SFASs, are closely related documents and were published to address specific accounting issues, with a view to enhancing the accuracy and transparency of financial reporting. There❀ would often be a lengthy public consultation about the potential consequences of a rule change before an SFAS was published to update guidelines.

Once an SFAS was published, it became part of the FASB accounting standards, known as 澳洲幸运😼5官方开奖结果体彩网:generally accepted accounting principles (GAAP), that govern the preparation of corporate financial reports and are recognized as authoritative by the 澳洲幸运5官方开奖结果体彩网:Securities and Exchange Commission ꦗ(🃏SEC), which regulates American stock exchanges.