Financial Accounting Foundation

What it reported doing in 2025

Financial accounting standards board (fasb) and financial accounting standards advisory council (fasac): established in 1973, the fasb is the independent, private-sector organization, based in norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow generally accepted accounting principles (gaap). The fasb is recognized by the securities and exchange commission as the designated accounting standard setter for public companies. Fasb standards are recognized as authoritative by many other organizations, including state boards of accountancy and the american institute of cpas (aicpa). The fasb establishes and improves standards of financial accounting and reporting that foster financial reporting for nongovernmental entities that provides decision-useful information to investors and other users of financial reports. The financial accounting foundation (faf) supports and oversees the fasb. The following are some specific accomplishments and initiatives in 2025 related to specific agenda items and improving gaap in general. However, for a complete and detailed picture of the work of the fasb, including current and completed projects, expected timing, and other information, please visit fasb.org. In addition, the faf annual report provides a highlight of fasb's 2025 accomplishments and can be found at accountingfoundation.org. The fasb completed a variety of projects to improve the decision-usefulness of information provided to investors and other users of financial reports, issuing twelve final accounting standards updates (asu) and three proposed asus, the fasb staff issued invitations to comment to solicit input from stakeholders on the agenda consultation. The private company council (pcc) continues its work with improvements that address the needs of users of private company financial statements and advised the fasb during 2025 on a number of asus and proposed asus. The fasb continued with the development of the gaap financial reporting taxonomy (taxonomy) for extensible business reporting language (xbrl). The fasb conducted extensive outreach and other communications with stakeholders, including numerous meetings with users, preparers, liaison groups, auditors, and other stakeholders. Outreach activities also included various communications and other activities including: fasb members and staff delivered speeches at 135 different events during the year; 55 press releases, media advisories, and meeting recaps were issued on a variety of fasb standard setting activities, with accompanying social media; 11 educational webcasts and videos were provided, and 22 meetings were held with national and international standard setters. The fasac, which comprises 36 volunteer members (with the exception of its chair, who is compensated) representing a broad cross-section of the fasb's stakeholders, met four times in 2025. The primary function of fasac is to advise the fasb on issues related to projects on the fasb's agenda, possible new agenda items, project priorities, procedural matters that may require the attention of the fasb, and other matters as requested. Fasb's other advisory groups, including the investor advisory committee, the not-for-profit advisory committee, the small business advisory committee, and the emerging issues task force all held meetings in 2025 to support the efforts of the fasb.

Financial Efficiency

• Mission deployment rate: 79.4%; rating input score 79
• Program expense ratio: 78.1%; rating input score 78
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 93.3%; rating input score 93; 18th percentile among comparable filings
• Pay-setting controls: 5 of 6 controls in place; rating input score 83
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Scored; rating input score 0
• Grant itemization coverage: 100%; rating input score 100; 81st percentile among comparable filings
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 65th percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -0.1%; rating input score 17; 17th percentile among comparable filings
• Total-asset coverage ratio: 2.17; rating input score 51; 51st percentile among comparable filings
• Liabilities to assets ratio: 0.23; rating input score 63; 63rd percentile among comparable filings
• Officer compensation ratio: 18%; rating input score 2; 2nd percentile among comparable filings

Growth

• Program expense growth: 3.1% per year; rating input score 100; 24th percentile among comparable filings
• Revenue growth: 3.8% per year; rating input score 100; 32nd percentile among comparable filings
• Asset growth: 4.7% per year; rating input score 100; 34th percentile among comparable filings