Financial Accounting Foundation

The Financial Accounting Foundation (FAF) is located in Norwalk, Connecticut. It was organized in 1972 as a non-stock, Delaware Corporation. It is an independent, organization in the private sector. They need to be independent in order to ensure objectivity and integrity in reporting standards.

The foundation is responsible for [1]:

• Establishing and improving financial accounting and reporting standards;
• Educating constituents about those standards;
• 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;
• Selecting the members of the standard-setting Boards and Advisory Councils; and
• Protecting the independence and integrity of the standard-setting process.

They operate four branches in their organization. They operate the FASB, GASB, Financial Accounting Standards Advisory Council (FASAC), and the Governmental Accounting Standards Advisory Council (GASAC). The FASAC is composed of FASB constituents and consult with FASB on issues. The GASAC is composed of GASB constituents and consult with GASB on issues.

The FAF Board of Trustees is made up of members from constituent organizations having interest in financial reporting. These constituent organizations include:

• American Accounting Association
• American Institute of Certified Public Accountants
• CFA Institute
• Financial Executives International
• Government Finance Officers Association
• Institute of Management Accountants
• National Association of State Auditors, Comptrollers and Treasurers
• Securities Industry and Financial Markets Association

There are currently five officers and fourteen trustees. The FAF operates seven committees, the Executive Committee, the Development Committee, the Appointments and Evaluations Committee, the Finance and Compensation Committee, the Audit Committee, the Standard-Setting Process Oversight Advisory Committee, and the Corporate Governance Committee.