Financial Accounting Standards Board

About FASB

The Financial Accounting Standards Board (FASB) is the independent standards-setting body responsible for establishing Generally Accepted Accounting Principles (GAAP) in the United States. Established in 1973, FASB develops and issues accounting standards through Accounting Standards Codification (ASC) that publicly traded companies, private companies, and nonprofit organizations must follow.

FASB serves the US capital markets and public interest by establishing authoritative accounting standards that ensure financial reporting transparency and comparability. Their standards govern how companies recognize revenue, account for leases, report assets and liabilities, and disclose financial information.

Service Offerings

FASB's core functions include:

• Standards Development: Create and maintain Generally Accepted Accounting Principles (GAAP) through a public deliberation process.
• Accounting Standards Codification: Maintain the ASC, the official source of authoritative GAAP for non-governmental entities.
• Technical Guidance: Issue implementation guides, practice aids, and educational materials for applying accounting standards.
• Stakeholder Engagement: Conduct public comment periods, roundtables, and outreach to gather input on proposed standards.

FASB operates as an independent standard-setter under oversight of the Financial Accounting Foundation, funding its operations through accounting support fees rather than government appropriations or industry sponsorship.

Approach and Positioning

FASB positions itself as the authoritative source of US GAAP, emphasizing independence from both government and industry to maintain objective, high-quality accounting standards. Their deliberative process involves public input, research, and economic analysis before issuing standards.

What sets FASB apart is their authority: compliance with FASB standards is required for US public companies by the SEC, and widely adopted by private companies and nonprofits as the authoritative framework for financial reporting.

Key functions include:

• Sole authority for establishing US GAAP
• Independent governance and funding model
• Public, transparent standard-setting process
• Ongoing maintenance and improvement of accounting standards

How Omniga Compares to FASB

FASB is an accounting standards organization, while Omniga is a finance orchestration platform and services provider—they operate in entirely different domains with no overlap.

FASB sets the accounting standards that define how financial transactions should be recognized, measured, and reported. Omniga provides software and services for executing finance operations: categorizing transactions, managing workflows, and producing reports. In practice, finance professionals using Omniga follow FASB's standards when categorizing and reporting transactions, but FASB itself isn't a service provider or technology company.

Key differences:

• Type: FASB is a standards-setting body and professional organization; Omniga is a commercial software and services company
• Function: FASB develops accounting standards that others follow; Omniga provides tools and services for executing finance work according to those standards
• Users: FASB serves the public interest and accounting profession broadly; Omniga serves specific customers using its platform and services

FASB sets the rules for accounting; Omniga helps finance teams do the work while following those rules.