The Statement of Financial Accounting Concepts (SFAC) provides information on financial issues and serves as a precursor to developing accounting standards. FASB uses external opinions to create new accounting principles through an extensive two-process system.
The Statement of Financial Accounting Concepts (SFAC) is the document issued by the Consejo de Normas de Contabilidad Financiera (FASB) in relation to a general vision of the concepts of financial information. These declarations do not create new accounting principles; they simply provide certified public accountants and accountants (CPA) with information on common commercial or financial issues. FASB generally issues these declarations as a precursor to develop and implement real financial accounting standards. These accounting concept statements may allow accounting educators and theorists the opportunity to comment or suggest changes in the concept statement before the FASB drafted an accounting standard.
Due to the fact that the accounting industry is governed by FASB, a private accounting organization, the industry has an important focus on using self-government to develop and implement accounting standards. The FASB Financial Accounting Concept Declaration is intended to serve the public interest through the establishment of objectives and goals for companies to register and inform financial information. The conceptual states allow FASB to see how it presents the information on the financial states and the public reaction related to the new accounting concepts. The external opinions of the leaders of the accounting industry are an important influence on creating new accounting standards.
FASB has issued six years of financial accounting concepts since 1978. These SFACs cover topics that include financial information objectives, qualitative characteristics of accounting information, financial status elements (reemplazados), financial information objectives of non-commercial organizations, recognition and medicine in financial estates, elements of financial estates (stado de enmienda) and the use of effective flow information and the value present in accounting information. Each concept registered on the FASB website and the signatures of accountants or public accountants can be viewed or consulted as a reference. These concepts also provide FASB with a point of departure for the process of developing new accounting rules.
FASB uses an extensive “two process” when developing new accounting principles. The FASB may issue the Declaration of Financial Accounting Concepts with the intention of publicly discussing and commenting. External opinions are reviewed by FASB and its governing partners to determine if a new accounting principle is needed based on comments from external individuals. If new accounting principles are needed, FASB issues a Borrador de Exposición (ED), which may be based on the recent Statement of Financial Accounting Concepts. Este ED luego se publica para comentario público; if they review the comments and FASB can make changes in the ED. Once the ED is accepted by the accounting profession, FASB escribes the new accounting principle.
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