The term financial accounting means setting forth the summary, analysis and reporting of the financial transactions of an entity over time. These transactions are summarized in the preparation of financial statements, including the balance sheet, income statement and cash flow statement, that provide information about an entity’s operation over a specified period.
See under Proprietary Accounting.
Federal Accounting Standards Advisory Board (“FASAB”)
The Federal Accounting Standards Advisory Board (FASAB or ‘the Board’) was establishedIn October 1990 as a federal advisory committee. The officials responsible for its creation were the Secretary of the Treasury, the Director of the Office of Management and Budget, and the Comptroller General of the United States (head of the GAO). They created FASAB to develop accounting standards, measures, and evaluation terms for the Federal Government.
FASAB issues the following accounting advisories:
- Statements of Federal Financial Accounting Concepts (provide general guidance to the FASAB as it deliberates on the creation or amendment of Statements of Federal Financial Accounting Standards)
- Statements of Federal Financial Accounting Standards (contain specific authoritative requirements for financial reporting by federal government agencies)
- Interpretations (clarify meanings of and provide definitions for reading Statements of Federal Financial Accounting Standards)
- Technical Bulletins (provide guidance for applying FASAB Statements and Interpretations)
- Technical Releases (provide guidance for applying accounting standards and on auditing issues)
FASAB standards are available in: