Statements of Financial Accounting Standards (SFAS)

Statements of Financial Accounting Standards (SFAS) are official guidelines issued by the Financial Accounting Standards Board (FASB) that specify how companies should prepare and present their financial statements. They ensure consistency, transparency, and comparability in financial reporting, making it easier for investors, regulators, and other stakeholders to understand a company's financial health. Essentially, SFAS provide a clear set of rules to ensure that financial information is accurate and uniform across different organizations.