Financial Accounting Standards Board

What Does Financial Accounting Standards Board Mean?

The Financial Accounting Standards Board (FASB) is an organization established in 1973 with the responsibility of setting standards for professional accountants. In the context of insurance, securities are often purchased as investments within life insurance plans. The company responsible for acquiring and reporting these security purchases must adhere to FASB guidelines.

Insuranceopedia Explains Financial Accounting Standards Board

The FASB is not a government agency; however, it has been tasked by the Securities and Exchange Commission with developing accounting standards. As a result, it publishes rules and guidelines aimed at establishing industry standards for accounting professionals.

While most insurance companies primarily focus on insurance, many also invest in securities, either on behalf of policyholders or for their own benefit. In both scenarios, these companies must comply with FASB guidelines.