| The FASB is one organization that provides | | | | reporting by focusing on the primary |
| standardized guidelines for financial | | | | characteristics of relevance and reliability |
| reporting. The mission of the Financial | | | | and on the qualities of comparability and |
| Accounting Standards Board (FASB) is to | | | | consistency; |
| establish and improve standards of financial | | | | |
| accounting and reporting for the guidance and | | | | --Keep standards current to reflect changes |
| education of the public, including issuers, | | | | in methods of doing business and changes in |
| auditors and users of financial information. | | | | the economic environment; |
| | | | |
| Accounting standards are essential to the | | | | --Consider promptly any significant areas of |
| efficient functioning of the economy because | | | | deficiency in financial reporting that might |
| decisions about the allocation of resources | | | | be improved through the standard-setting |
| rely heavily on credible, concise, | | | | process; |
| transparent and understandable financial | | | | |
| information. Financial information about the | | | | --Promote the international convergence of |
| operations and financial position of | | | | accounting standards concurrent with |
| individual entities also is used by the | | | | improving the quality of financial reporting; |
| public in making various other kinds of | | | | and |
| decisions. | | | | |
| | | | --Improve the common understanding of the |
| To accomplish its mission, the FASB acts to: | | | | nature and purposes of information contained |
| | | | in financial reports. |
| --Improve the usefulness of financial | | | | |