What is the Statement of Financial Accounting Standards (SFAS)?
The Statement of Financial Accounting Standards (SFAS) refers to a series of official guidelines issued by the Financial Accounting Standards Board (FASB) for governing accounting and financial reporting practices. Until its replacement by the Accounting Standards Codification (ASC) in 2009, SFAS served as the cornerstone for Generally Accepted Accounting Principles (GAAP) in the United States. These statements played a crucial role in establishing uniformity and transparency in financial statements, providing investors, analysts, and other stakeholders with reliable and comparable financial information.
Examples of SFAS
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SFAS 142 - Goodwill and Other Intangible Assets: This statement addresses the accounting and reporting standards for the acquisition of intangible assets and the impairment of goodwill.
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SFAS 133 - Accounting for Derivative Instruments and Hedging Activities: This statement establishes accounting and reporting standards for derivative instruments and hedging activities.
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