FAF satisfy the criteria in Section 108 of the SarbanesOxley Act and

Faf satisfy the criteria in section 108 of the

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FAF, satisfy the criteria in Section 108 of the Sarbanes–Oxley Act and, accordingly, the FASB's financial accounting and reporting standards are recognized as “generally accepted” for purposes of the federal securities laws. 19 Consequently, the FASB is the organization having the authority to issue standards for financial accounting. Thus, throughout this book, pronouncements of the FASB and those of its predecessor organizations not superseded or amended are presented as GAAP . The Mission of the FASB
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The FASB's mission is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including   issuers,   auditors,   and   users   of   financial   information.   In attempting to accomplish this mission, the FASB seeks to 1 . Improve the usefulness of financial reporting by focusing on the primary characteristics of relevance and faithful representation and on   the   qualities   of   comparability   and   consistency   (discussed in Chapter 2 ( 2 . Keep standards current to reflect changes in methods of doing business and changes in the economic environment 3 . Consider promptly any significant areas of deficiency in financial reporting   that   might   be   improved   through   the   standard-setting process 4 . Promote the international comparability of accounting standards concurrent with improving the quality of financial reporting 5 . Improve the common understanding of the nature and purposes of information contained in financial reports Types of Pronouncements Originally, the FASB issued two types of pronouncements,  Statements of Financial   Accounting   Standards  ( SFAS s)   and  Interpretations . Subsequently,   the   FASB   established   two   new   series   of releases:  Statements   of   Financial   Accounting   Concepts  ( SFAC s) and  Technical Bulletins SFAS s conveyed required accounting methods and   procedures   for   specific   accounting   issues   and   officially   created GAAP  .   Interpretations  were   modifications   or   extensions   of   issues pronouncements  . SFAC s are intended to establish the objectives and concepts that the FASB will use in developing standards of financial
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accounting and reporting. To date, the FASB has issued eight  SFAC s, which are discussed in depth in  Chapters 2 6 , and  7 SFAC s differed from  SFAS s in that they did not establish GAAP. Similarly, they are not intended to invoke Rule 203 of the Rules of Conduct of the Code of Professional   Ethics.   It   is   anticipated   that   the   major   beneficiary   of these  SFAC s   will   be   the   FASB   itself.   However,   knowledge   of   the
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