Statement of Financial Accounting Standards (SFAS)

The Statement of Financial Accounting Standards (SFAS) are guidelines established by the Financial Accounting Standards Board (FASB) to ensure consistent and accurate financial reporting by companies. They set out how businesses should record, measure, and disclose financial information, promoting transparency and comparability across organizations. In essence, SFAS provides a standardized framework for preparing financial statements, helping investors, regulators, and other stakeholders understand a company's financial health reliably. These standards evolve over time to reflect changes in the economy, technology, and accounting practices.