Financial Accounting Standards Board

pecuniary story Standards plug-in Ronny Wagner ACC 201 Principles of pecuniary news encompass Prof. Kimberly Byrd March 18, 2012 Financial be Standards age In 1973, establish on the recommendation of the Wheat Commission, the FASB was create to solve the weaknesses of the accountancy Principles shape up (APB) which replaced CAP, the Committee on Accounting Procedures (Giroux, n.d.). CAP was a committee of the American land of Accountants (AIA) and from 1938 to 1959 issued 51 Accounting query Bulletins which dealt with the particular(prenominal) accounting and report problems. Since in that location was no poser for financial accounting, dealing with individual issues without a mannikin direct to stern criticism of the accounting profession. In 1959, the Accounting Professionals Board (APB) replaced CAP and operated from 1959 through 1973 and issued 31 Accounting Principle Board Opinions, various Interpretations, and four Statements. The Opinions also dealt with specific accounting and reporting problems. The APBs main objective was to induce a framework for financial accounting and reporting, but their framework (APB Statement no 4), Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises was non successful.

Criticism of the APB led to the creation of the Financial Accounting Standards Board (FASB) and its supporting structure (Online Learning Center, 2007). Since then, the FASB has been the designated shaping in the close sector for establishing the standards of financial accounting. These standards govern th e cooking of financial reports by nongovern! mental entities. They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) and the American Institute of Certified humanity Accountants (AICPA) to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934 (FASB, n.d.). The SEC was created by...If you wishing to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper