FASB (Financial Accounting Standards Board)

The Financial Accounting Standards Board (FASB) is an independent organization responsible for establishing and improving financial accounting and reporting standards in the United States. These standards guide how companies prepare their financial statements, ensuring consistency, transparency, and accuracy so that investors, regulators, and the public can understand a company's financial health. By creating Generally Accepted Accounting Principles (GAAP), FASB helps maintain trust in financial reporting, which is crucial for informed decision-making in the business world.