Which organization's standards cover the interpretations and staff positions relevant to GAAP?

The correct response identifies the Financial Accounting Standards Board (FASB) as the organization responsible for establishing and interpreting generally accepted accounting principles (GAAP). FASB plays a central role in the development of accounting standards in the United States, and it continuously assesses how existing standards apply to new accounting issues and interpretations. This ensures that financial reporting remains relevant, reliable, and comparable across various businesses and sectors.

FASB issues Statements of Financial Accounting Standards (SFAS) and other guidance, which provide interpretations and staff positions that help clarify how GAAP should be applied. This ongoing process helps professionals address emerging issues and apply accounting principles consistently.

The other organizations listed do play significant roles in the overall accounting environment but do not focus specifically on the interpretations and staff positions relevant to GAAP in the way that FASB does. For instance, the Public Company Accounting Oversight Board (PCAOB) is primarily concerned with the oversight of public company audits, ensuring the integrity of financial reporting through audit quality. The American Institute of Certified Public Accountants (AICPA) serves to support the accounting profession and provides resources and guidance, but it does not set GAAP. The Securities and Exchange Commission (SEC) oversees the enforcement of securities laws and can