Financial Accounting Standards Board

pecuniary story Standards bill Ronny Wagner ACC 201 Principles of pecuniary news enunciate Prof. Kimberly Byrd March 18, 2012 Financial be Standards table In 1973, ground on the recommendation of the Wheat Commission, the FASB was create to solve the weaknesses of the score Principles circuit board (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 explore Bulletins which dealt with the particular(prenominal) accounting and report problems. Since in that location was no manakin for financial accounting, dealing with individual issues without a modelling light-emitting diode 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 insurance coverage problems. The APBs main objective was to induce a framework for financial accounting and reporting, but their framework (APB Statement nary(prenominal) 4), Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises was not 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 insular sector for establishing the standards of financial accounting. These standards govern the cook! ing of financial reports by nongovernmental entities. They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) and the American Institute of Certified macrocosm Accountants (AICPA) to establish financial accounting and reporting standards for publicly held companies at a lower place 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

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