FASB

C

The Financial Accounting Standards Board.

The correct answer is C. The Financial Accounting Standards Board.

The Financial Accounting Standards Board (FASB) is an independent, private-sector organization responsible for establishing and improving accounting standards in the United States. It was established in 1973 and is recognized as the official accounting standard-setter in the country.

The main objective of the FASB is to develop and issue generally accepted accounting principles (GAAP) in order to provide useful and relevant financial reporting information to users of financial statements. The GAAP serves as a framework for companies to prepare their financial statements and ensures consistency, comparability, and transparency in financial reporting.

The FASB operates through a transparent and inclusive standard-setting process that involves public input and participation. It sets accounting standards by issuing statements of financial accounting standards, which provide specific guidance on various accounting issues. These standards are developed based on the needs of financial statement users, input from stakeholders, and extensive research and analysis.

The FASB also works closely with the International Accounting Standards Board (IASB) to converge their respective accounting standards, aiming to establish a single set of high-quality global accounting standards. This convergence effort is intended to facilitate comparability and enhance the consistency of financial reporting across different countries.

It is important for financial professionals, such as financial analysts, to be familiar with the standards issued by the FASB as they form the basis for financial reporting in the United States. Compliance with these standards is essential for accurate and reliable financial analysis and decision-making.

In summary, the FASB is the authoritative body responsible for developing and issuing accounting standards in the United States. Its primary goal is to establish and improve the financial accounting and reporting standards, known as GAAP, to ensure transparency and provide useful information to financial statement users.