A Profit Bump for Companies, and Tax Transparency for Investors
By GRETCHEN MORGENSON JULY 23, 2016
The Financial Accounting Standards Board (“FASB”) is a board in the United States that
sets auditing standards specifically for corporations in America. The FASB was established
in 1973 and is an independent, not-for-profit organization based in Norwalk, Connecticut.
The FASB generates financial accounting and reporting standards for public companies,
private companies, and not-for-profit organizations. Over-all, the concept and purpose for
FASB is to collectively improve financial accounting and reporting standards and to
provide information to investors and users of financial reports. The FASB’s objective is to
develop and provide financial accounting standards through a transparent and
comprehensive process.
This article is about the FASB and current changes they are making in tax deductions.
Although the FASB alleges to remain as transparent as possible, there has been ambiguity
and complications in many areas. Recently the FASB introduced a new rule that is
intended to reduce costs and these complexities that come with auditing maintenance and
standards. This was initially imposed in March of this year but didn’t gain any real
recognition until early this summer. But will not be in full affect until the year 2017. The
new auditing rule will raise several companies’ profits simultaneously while bringing
clarity to the taxes larger corporations pay and or should be paying. “This sort of appeared
from FASB without any advance warning,” said Robert Willens, an authority on
accounting and tax matters who flagged it in an April report for clients. “This is not
