| The FASB is one organization that provides | | | | deficiency in financial reporting that might be |
| standardized guidelines for financial reporting. The | | | | improved through the standard-setting process; |
| mission of the Financial Accounting Standards | | | | --Promote the international convergence of |
| Board (FASB) is to establish and improve | | | | accounting standards concurrent with improving |
| standards of financial accounting and reporting for | | | | the quality of financial reporting; and |
| the guidance and education of the public, including | | | | --Improve the common understanding of the |
| issuers, auditors and users of financial information. | | | | nature and purposes of information contained in |
| Accounting standards are essential to the efficient | | | | financial reports. |
| functioning of the economy because decisions | | | | The FASB develops broad accounting concepts as |
| about the allocation of resources rely heavily on | | | | well as standards for financial reporting. It also |
| credible, concise, transparent and understandable | | | | provides guidance on implementation of standards. |
| financial information. Financial information about the | | | | Concepts are useful in guiding the Board in |
| operations and financial position of individual entities | | | | establishing standards and in providing a frame of |
| also is used by the public in making various other | | | | reference, or conceptual framework, for resolving |
| kinds of decisions. | | | | accounting issues. The framework will help to |
| To accomplish its mission, the FASB acts to: | | | | establish reasonable bounds for judgment in |
| --Improve the usefulness of financial reporting by | | | | preparing financial information and to increase |
| focusing on the primary characteristics of | | | | understanding of, and confidence in, financial |
| relevance and reliability and on the qualities of | | | | information on the part of users of financial |
| comparability and consistency; | | | | reports. It also will help the public to understand |
| --Keep standards current to reflect changes in | | | | the nature and limitations of information supplied |
| methods of doing business and changes in the | | | | by financial reporting. |
| economic environment; | | | | Matthew Meyer. |
| --Consider promptly any significant areas of | | | | |