Financial Accounting Foundation [FAF] Law and Legal Definition

The Financial Accounting Foundation (FAF) is an independent, private-sector organization responsible for establishing and improving financial accounting and operating standards. The FAF educates its constituents about accounting standards.

The Financial Accounting Foundation is responsible for:

a. Establishing and improving financial accounting and reporting standards;

b. Educating constituents about those standards;

c. The oversight, administration, and finances of its standard-setting Boards, the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB), and their Advisory Councils;

d. Selecting the members of the standard-setting Boards and Advisory Councils; and

e. Protecting the independence and integrity of the standard-setting process.