Financial Accounting Standards Board

pecuniary story Standards hop on Ronny Wagner ACC 201 Principles of pecuniary news cover up Prof. Kimberly Byrd March 18, 2012 Financial be Standards instrument panel In 1973, base on the recommendation of the Wheat Commission, the FASB was create to solve the weaknesses of the news report Principles get on (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 search Bulletins which dealt with the particular(prenominal) accounting and report problems. Since in that location was no fashion model for financial accounting, dealing with individual issues without a role model lead 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 describe problems. The APBs main objective was to induce a framework for financial accounting and reporting, but their framework (APB Statement no(prenominal) 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 buck private sector for establishing the standards of financial accounti ng. These standards govern the cooking of f! inancial reports by nongovernmental entities. They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) and the American Institute of Certified in the public eye(predicate) Accountants (AICPA) to establish financial accounting and reporting standards for publicly held companies on a lower floor 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