The FASB is the independent, not-for-profit organization that sets GAAP accounting and financial reporting standards for businesses and not-for-profit organizations. The FASBâs standards are recognized as authoritative by the SEC. The FASBâs standards also are recognized by the AICPA as authoritative and the basis for auditorsâ opinions concerning financial statements; and by the State Boards of Accountancy for private companies and not-for-profit organizations.