Statement of Federal Financial Accounting Standards [SFFAS] Law and Legal Definition

Statement of Federal Financial Accounting Standards (SFFAS) refers to a formal document issued by the Financial Accounting Standards Board (FASB), which details accounting standards and guidance on selected accounting policies set out by the FASB. These standards are recognized as generally accepted accounting principles (GAAP). SFFAS are issued, with the expectation that all reporting companies listed on American stock exchanges will adhere to them. The purpose of SFFAS is to ensure a higher level of corporate transparency.