What does the Federal Accounting Standards Advisory Board (FASAB) do?

The Federal Accounting Standards Advisory Board (FASAB) is responsible for establishing and improving accounting standards for federal government entities in the United States. The primary goal of FASAB is to enhance the federal financial reporting and ensure that the financial statements provide useful information to users such as Congress, federal agencies, and the public. This work is essential for maintaining credibility and transparency in federal financial reports, which is critical for effective governance and accountability.

By defining Generally Accepted Accounting Principles (GAAP) tailored specifically for federal entities, FASAB addresses the unique aspects of federal financial transactions and reporting needs, distinguishing these standards from those applicable to private sector organizations or state and local governments. This specialized focus helps ensure that federal financial statements accurately reflect the operations and financial status of the government.