FASB
The Financial Accounting Standards Board, the private-sector body responsible for establishing US Generally Accepted Accounting Principles (GAAP).
What is FASB?
The Financial Accounting Standards Board (FASB) is a private, non-governmental organization designated by the SEC as the authoritative body for establishing accounting and financial reporting standards for public and private companies in the United States. FASB issues Accounting Standards Codification (ASC) updates that form the basis of US GAAP. Major FASB standards in recent years include ASC 842 (lease accounting), ASC 606 (revenue recognition), and ASC 326 (credit losses under CECL). The FASB coordinates with the International Accounting Standards Board (IASB) to reduce differences between US GAAP and IFRS, though full convergence has not been achieved. All SEC-registered companies must prepare financial statements in accordance with FASB standards.
Example
When FASB issued ASC 842 in 2016, it required companies to recognize most operating leases on the balance sheet for the first time. Airlines, retailers, and restaurant chains — which lease aircraft, stores, and equipment — suddenly had to add significant right-of-use assets and lease liabilities to their balance sheets. For some companies, balance sheet debt increased by billions of dollars, affecting financial ratios like debt-to-equity used by lenders and investors.
Source: FASB — About FASB