Chapter 15, Problem 1CCTC

To determine

Financial Accounting Standards Board

It is common known as FASB. It is a private, non-profit organization which is a standard setting body. The main purpose of the FASB is to create and improve GAAP (Generally Accepted Accounting Principles) within the US. GAAP is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies.

To Explain: the primary effect on the Company T’s financial statements when new standards are applied.