Finance: What is FASB?

What is FASB? The FASB is the Financial Accounting Standards Board. This is a private group that is responsible for writing all accounting rules and determining exactly how financial statements should be written and interpreted.

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Transcript

00:30

religion of accounting so GAAP was the most famous creation of FASB, but

00:35

hundreds of other little creations followed in that the august group of

00:39

seven members who run FASB realized 50 years ago that the world would look a

00:44

whole lot different half a century later when you were countin beans like who'd have

00:49

thunk about digital beans accounting standards would have to be flexible [People stretching in a field]

00:52

almost in the same vague way the US Constitution is written so that when a

00:57

customer buys an upgrade from the people who make angry birds in an app sold by

01:04

Apple but downloaded by Comcast paid for with a Visa card while everyone would

01:10

know with certainty who got paid what when the key idea behind FASB is that

01:14

it's an adaptive group that changes with a quickly changing bean-counting

01:19

environment trying to make sure everything is you know fair and square

01:22

for all if you want to think about it in a mathy way well they seek to be the

01:26

derivative not the curve itself alright so you're living right here on the curve [Arrow points to derivative on a curve]

01:31

changing all the time dxdy and all that crap, FASB....