The establishment of the Financial Accounting Standards Board (FASB) in the United States in 1973 was a milestone I consider vital in the evolution of accounting. FASB became the authoritative body for setting standards under generally accepted accounting principles (GAAP), replacing earlier, less formal boards.
For me, its significance lies in the consistency and reliability it brought to financial reporting. I see FASB as having professionalised accounting in the US, ensuring that companies could produce comparable and trustworthy financial statements.
I also reflect on how this development strengthened investor confidence. By creating a clear, authoritative set of standards, FASB helped the profession serve the public and the economy in a more structured way.
Looking back, I realise that FASB’s creation marked a turning point where accounting became not just a technical skill, but a profession central to economic stability and transparency. Its impact continues to resonate in every financial statement reviewed today.
