The seven-member board of accounting professionals that establishes standards of financial accounting and reporting in the United States, known as the generally accepted accounting principles (GAAP), which governs the preparation of corporate financial reports.
The FASB is essentially an independent, nonprofit, private sector handful of highly-qualified accounting nerds who work hard to make sure that the financial statements corporations and nonprofits maintain adhere to a strict set of standards. These standards aim to make sure that investors and other stakeholders can understand the material contained within accounting reports and that the rest of us don’t fall asleep at our desks trying to understand material that might (MIGHT) be relevant to us in some tangible way. Given that the mission of the FASB charges the seven-member board with setting, “setting the highest-quality standards through a process that is robust, comprehensive, and inclusive,” how could they possibly fail?
As the FASB is independent, each member is required to sever ties with any former employers before beginning either a single five-year term or a maximum of two five-year terms. Each member boasts a truly nerdy background, as members are chosen for their ability to provide “knowledge of accounting, finance, business, accounting education, and research.”
“Honey, we better restock the liquor cabinet! All seven of the party animals from the FASB are coming to dinner tonight.”