Who issues accounting standards

Companies, not-for-profits, governments, and other organizations use accounting standards as the foundation upon which to provide users of financial statements with the information they need to make decisions about how well an organization or government is managing its resources. Investors and lenders can use this information to decide where to supply resources or lend money. Donors, including foundations and grantors, can use this information to decide where to donate.

Citizens can use this information to decide where public officials are spending tax dollars. The belief is that GAAP financial statements are widely understood by lenders and investors.

However, studies suggest that as many as two-thirds of medium-sized and large private companies choose not to produce GAAP financial statements. Private firms have alternatives to GAAP. AICPA has designed an accounting framework for small and medium-sized businesses. Securities and Exchange Commission. Financial Accounting Standards Board. Accessed July 14, Stephen A. Journal of Accounting and Public Policy, Financial Accounting Foundation.

Chicago Booth Review. American Institute of Certified Public Accountants. Financial Analysis. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification.

I Accept Show Purposes. Your Money. Personal Finance. Not-for-Profit Advisory Committee NAC : Provides advice on existing guidance, current and proposed technical agenda projects, and longer- term issues related to the not-for-profit sector. Small Business Advisory Committee SBAC : Provides advice on FASB projects related to the operationality and the anticipated costs, complexities, and benefits of potential solutions principally from a small public company perspective.

Printable PDF. Jones James L. Buesser Frederick L. Cannon Susan M. Cosper Marsha L. Hunt Senior Staff Hillary H.