Federal Accounting Standards Advisory Board
Encyclopedia
The Federal Accounting Standards Advisory Board (FASAB) is a United States federal advisory committee whose mission is to develop generally accepted accounting principles (GAAP) for federal financial reporting entities.
The Chief Financial Officers Act of 1990
required annual, audited financial statements for the United States Government and its component entities, referred to as federal reporting entities. In order to apply the statues of the CFO Act of 1990, the Secretary of the Treasury
, the Director of the Office of Management and Budget
(OMB), and the Comptroller General established FASAB to develop the “applicable accounting principles” for the newly required financial statements.
The AICPA Council designated FASAB as the body that establishes accounting principles for federal entities. The AICPA's hierarchy of generally accepted accounting principles in Statement of Auditing Standards (SAS) No. 91, The Federal GAAP Hierarchy, governs what constitutes GAAP for U.S. government reporting entities. The hierarchy lists the priority sequence of sources that an entity should look to for accounting and reporting guidance.
FASAB issues the Statement of Federal Financial Accounting Standards (SFFAS).
The Chief Financial Officers Act of 1990
Chief Financial Officers Act of 1990
The Chief Financial Officer and Federal Financial Reform Act of 1990, or CFO Act, signed into law by President George H.W. Bush on November 15, 1990, is a United States federal law intended to improve the government's financial management, outlining standards of financial performance and disclosure...
required annual, audited financial statements for the United States Government and its component entities, referred to as federal reporting entities. In order to apply the statues of the CFO Act of 1990, the Secretary of the Treasury
United States Secretary of the Treasury
The Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...
, the Director of the Office of Management and Budget
United States Office of Management and Budget
The Office of Management and Budget is a Cabinet-level office, and is the largest office within the Executive Office of the President of the United States .The current OMB Director is Jacob Lew.-History:...
(OMB), and the Comptroller General established FASAB to develop the “applicable accounting principles” for the newly required financial statements.
The AICPA Council designated FASAB as the body that establishes accounting principles for federal entities. The AICPA's hierarchy of generally accepted accounting principles in Statement of Auditing Standards (SAS) No. 91, The Federal GAAP Hierarchy, governs what constitutes GAAP for U.S. government reporting entities. The hierarchy lists the priority sequence of sources that an entity should look to for accounting and reporting guidance.
FASAB issues the Statement of Federal Financial Accounting Standards (SFFAS).