What is the primary function of the Financial Accounting Standards Board (FASB)?

The primary function of the Financial Accounting Standards Board (FASB) is to create and enhance financial accounting standards in the United States. This organization plays a crucial role in establishing guidelines that govern how financial statements are prepared and presented, ensuring consistency, transparency, and accountability in financial reporting.

By developing these standards, FASB helps companies comply with generally accepted accounting principles (GAAP), which are essential for investors, regulators, and other stakeholders to accurately assess a company's financial health and performance. The standards aim to improve the comparability and reliability of financial statements across different organizations, facilitating more informed decision-making by users of financial information.

In contrast, conducting audits, preparing tax regulations, or assisting with personal financial planning fall outside of FASB's mandate. Auditing is typically the responsibility of independent auditors, tax regulations are managed by the Internal Revenue Service (IRS) and similar regulatory bodies, while personal financial planning is generally undertaken by financial advisers and professionals rather than a standards-setting organization like FASB.