What organization is responsible for creating authoritative generally accepted accounting principles?

The Financial Accounting Standards Board (FASB) is the organization charged with developing and establishing generally accepted accounting principles (GAAP) in the United States. FASB's role is crucial as it sets the framework for financial reporting, ensuring clarity, consistency, and transparency in financial statements. These principles guide accountants and organizations in preparing their financial reports, making them reliable for investors, stakeholders, and regulators.

FASB's standards are recognized as the authoritative source for GAAP in the U.S., and they undergo a rigorous process that involves public input and consideration of the economic environment. This makes FASB a key player in the accounting profession, distinct from other organizations that operate in related fields.

In contrast, the Securities and Exchange Commission (SEC) primarily oversees and enforces securities laws, ensuring that public companies provide accurate financial disclosures, but it relies on FASB to create the actual accounting standards. The International Accounting Standards Board (IASB) develops international financial reporting standards (IFRS) for global use, while the Government Accountability Office (GAO) focuses on auditing government expenditures and efficiency, rather than creating accounting principles.