Established in 1972, the Financial Accounting Foundation (FAF) is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut responsible for the oversight, administration, financing, and appointment of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).

The FASB and GASB establish and improve financial accounting and reporting standards—known as Generally Accepted Accounting Principles, or GAAP—for public and private companies, not-for-profit organizations, and state and local governments in the United States.

The FAF directs the effective, efficient, and appropriate stewardship of the FASB and GASB in carrying out their missions; selects and appoints FASB and GASB members and their advisory councils; oversees the Boards’ activities and due process; and promotes and protects the independence of the Boards.

FAF MISSION

The collective mission of the FASB, GASB, and FAF is to establish and improve financial accounting and reporting standards to provide useful information to investors and other users of financial reports and to educate stakeholders on how to most effectively understand and implement those standards.

The FASB, the GASB, the FAF Trustees, and the FAF management contribute to the collective mission according to each one’s specific role:
 

• The FASB and the GASB are charged with setting the highest-quality standards through a process that is robust, comprehensive, and inclusive.
• The FAF management is responsible for providing strategic counsel and services that support the work of the standard-setting Boards.
• The FAF Trustees are responsible for providing oversight and promoting an independent and effective standard- setting process.

The Importance of Diversity

The remarkable growth of the accounting profession in the past forty years ranks as one of the most dramatic occupational success stories in modern business history.

While the accounting profession is expected to grow by 16 percent between 2010 and 2020, applications by minorities to accounting programs at colleges and universities actually are declining. This is occurring while the number of minority-owned businesses is projected to skyrocket.

Caucasians still hold approximately 75 percent of the professional positions in accounting, and 90 percent of the partnerships. Women comprise only 21% of partners at firms although they are 45% of all accounting employees at firms. Further only, 15.8% women of color earned bachelor’s degrees in accounting in 2011-2012 school year.

It is up to all of us in the profession to work together to address this critical issue—diversifying the talent pipeline.