According to the American Institute of Certified Public Accountants (AICPA) website, it was founded in 1887
Accounting Standards Board Paper
Tatiana Hewitt
ACC 541
February 25, 2013
Cecil Lucy
Accounting Standards Board Paper
According to the American Institute of Certified Public Accountants (AICPA) website, it was founded in 1887. Accountancy was established as a distinguished profession with thorough educational requirements, high standards and a strict code of ethics. According to the Financial Accounting Standard Board (FASB), private non-profit organization responsible for developing and interpreting the (GAAP) in the United States but it is not affiliated with US government.
Two committees were created by the AICPA in 1971. The Wheat committee was in charge of determining how the accounting principals were to be established. This committee suggested that the original accounting principal board be eliminated and it was replaced with the FASB “this new board was to comprise representatives from various organizations” (Schroeder, R. G., Clark, M. W., & Cathey, J. M. 2011, p. 9 par 2). The Trueblood committee was in charge of studying the objectives of the financial statements “the study group requested that its reports… in developing objectives and significant efforts should be made to continue progress” (Schroeder, R. G., Clark, M. W., & Cathey, J. M. 2011, p. 9 par 3).
The hierarchy of the FASB, consist of a board of trustees, American Accounting Association, the AICPA, Financial Executive Institute, Financial Analyst Federation and the National Association of Accountants “The name was later changed in 1997 to the Institute Management of Accountants” (Schroeder, R. G., Clark, M. W., & Cathey, J. M. 2011, p.9 par 3)
The Financial Accounting Foundation (FAF) governs the FASB. The FAF is charge of appointing the Financial Accounting Standards Advisory Council (FASAC). The FASAC helps the FASB make decision on policies and to work through the agenda. Furthermore, the minimum number of members is twenty members “the bylaws at least call for at
Tatiana Hewitt
ACC 541
February 25, 2013
Cecil Lucy
Accounting Standards Board Paper
According to the American Institute of Certified Public Accountants (AICPA) website, it was founded in 1887. Accountancy was established as a distinguished profession with thorough educational requirements, high standards and a strict code of ethics. According to the Financial Accounting Standard Board (FASB), private non-profit organization responsible for developing and interpreting the (GAAP) in the United States but it is not affiliated with US government.
Two committees were created by the AICPA in 1971. The Wheat committee was in charge of determining how the accounting principals were to be established. This committee suggested that the original accounting principal board be eliminated and it was replaced with the FASB “this new board was to comprise representatives from various organizations” (Schroeder, R. G., Clark, M. W., & Cathey, J. M. 2011, p. 9 par 2). The Trueblood committee was in charge of studying the objectives of the financial statements “the study group requested that its reports… in developing objectives and significant efforts should be made to continue progress” (Schroeder, R. G., Clark, M. W., & Cathey, J. M. 2011, p. 9 par 3).
The hierarchy of the FASB, consist of a board of trustees, American Accounting Association, the AICPA, Financial Executive Institute, Financial Analyst Federation and the National Association of Accountants “The name was later changed in 1997 to the Institute Management of Accountants” (Schroeder, R. G., Clark, M. W., & Cathey, J. M. 2011, p.9 par 3)
The Financial Accounting Foundation (FAF) governs the FASB. The FAF is charge of appointing the Financial Accounting Standards Advisory Council (FASAC). The FASAC helps the FASB make decision on policies and to work through the agenda. Furthermore, the minimum number of members is twenty members “the bylaws at least call for at
References: Frequently Asked Questions about the AICPA. (2006-13). Retrieved on January 12, 2013 from http://www.aicpa.org Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2007). Financial accounting: Tools for business decision making (4th ed.). Hoboken, NJ: Wiley. Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2011). Financial accounting theory and analysis: Text readings and cases (10th ed.). Hoboken, NJ: Wiley.