Financial Accounting Standards Board
The FASB develops US GAAP through its standard-setting process and maintains the Accounting Standards Codification. Its role is distinct from the IASB’s development of IFRS Accounting Standards. US GAAP and IFRS can differ in recognition, measurement and presentation, so identify the relevant framework before applying a rule. The existence of different standard setters does not imply that either set of standards applies automatically in every jurisdiction.
Worked example
A US entity applies the relevant US GAAP requirements in the FASB Accounting Standards Codification. An IFRS-reporting entity instead applies the relevant IFRS Accounting Standards, subject to its jurisdiction’s adoption requirements.
Common mistake
Describing the FASB as the issuer of IFRS Accounting Standards or assuming a US GAAP rule is automatically the IFRS treatment.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Supporting | September 2026–June 2027 |
| ACCA | SBR | Supporting | September 2026–June 2027 |