Financial Accounting Foundation - FAF

The Financial Accounting Foundation, or FAF, was borne out of the private sector. FAF is an independent organization that upholds the integrity of accounting. They mainly maintain accounting operating standards, but sometimes make improvements and upgrades, too.

FAF has two sub-branches it oversees: the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB). While GASP...er, GASB...is non-governmental, they're the leaders in governmental reporting standards for state and local governments through GAAP: Generally Accepted Accounting Principles. Generally. Meanwhile, FASB does the same, but for companies and nonprofits rather than for state and local governments.

Without the Financial Accounting Foundation and society’s adherence to it, the accounting world would be a lot more confusing. By creating standards that everyone adheres to, FAF has created a sort of accounting “language” that accountants can easily “read” across various companies. Thanks, FAF.