Certified Government Financial Manager (CGFM) Practice Exam 2026 – Your All-in-One Guide to Exam Success!

The primary function of the Financial Accounting Standards Board (FASB) is to establish and improve financial accounting and reporting standards that provide decision-useful information to investors and other users of financial statements. This central role is essential because investors rely on accurate and comparable financial information to make informed decisions regarding their investments. By focusing on creating standards that enhance transparency and reliability in financial reporting, the FASB helps ensure that stakeholders have access to data that reflects the true financial posture and performance of organizations.

In the context of the specific roles mentioned, oversight of compliance with international standards, rules for state and local governments, and regulation of public sector financial audits are functions that are typically handled by other organizations or regulatory bodies. For instance, the International Accounting Standards Board (IASB) focuses on international standards, while specific governmental accounting standards are set by the Governmental Accounting Standards Board (GASB). Thus, the emphasis of the FASB on providing information that aids in investment decision-making distinctly underscores its primary mission in the realm of financial accounting and reporting.