GAAP-Generally accepted accounting principles
Dynamic set of both broad and specific guidleines that companies should follow when measuring and reporting the information in their financial statements
Accounting profession began to establish standards after
-stock market crash of 1929
Securites and Exchange Commission (SEC)
1934-Congress gave the SEC authority to set accounting and reporting standards for companies whose securities are publicly traded.
The SEC releases
Financial Reporting Releases (FRRs), which regulate what information companies must report to it as well as Staff Accounting Bulletins, authoritative supplements for reporting issues.
Committee on Accounting Procedure (CAP)
1938-The first private sector body to assume the task of setting accounting standards
Committee on Accounting Procedure (CAP)issued
51 Accounting Research bulletins (ARBs), which dealt with specific accounting and reporting problems.
Committee on Accounting Procedure (CAP) was a committee of the..
American Institute of Accountants (AIA)
The American Insistitute of Accountants was later renamed
1957- American Institute of Certified Public Accountants (AICPA), the national professional organization for certified public accountants.
Accounting Principles Board (APB)
1959-replaced the CAP in response to criticism of the accounting profession having no theoretical framework. The APB was established for this purpose, but failed to do so.
Accounting Principles Board (APB) was part of
the AICPA and supported financially by it. Was not independent of AICPA.
Accounting Principles Board (APB) issued
31 Accounting Principles Board opinions (APBOs), various interpretations and four Statements.
Financial Accounting Standards Board (FASB)
1973-5 Full Time Members, representing various constituencies concerned with accounting standards.
Financial Accounting Standards Board (FASB) is supported financially by
the Financial Accounting Foundation (FAF), which selects the members and oversees the FASB. (The FASB is independent of the AICPA)
Once of the Financial Accounting Standards Board's most important activity
-the creation of a conceptual framework
The FASB issued
over 160 specific accounting standards called Statements of Financial Accounting Standards (SFASs), as well as numerous FASB interpretations, Staff Positions, and Technical Bulletins
Emerging Issues Task Force (EITF)
1984- formed to provide more timely responses to emerging financial issues.
The Emerging Issues Task Force (EITF) includes
12 individuals from public accounting and private industry, along with a representative from the FASB and an SEC observer.
FASB Accounting Standards Codification (ASC)
2007- integrates and topically organized all relevant accounting pronouncements comprising GAAP in a searchable online database.
The order of Accounting organizations
1938-Committee of Accounting procedure- (CAP) part of AICPA or formerly called American Institute of Accountants (AIA)
1959-Accounting Principles Board (APB) replaced CAP- part of AICPA
1973-Financial Accounting Standard Board replaced APB- part of Financial Accounting Foundation (FAF)
Committee of Accounting procedure
American Institute of Accountants
American Institute of Certified Pubic Accountants
Accounting Principles Board
Financial Accounting Foundation
Financial Accounting Standards Board
International Accounting Standards Committee-formed 1973 to develop global accounting standards
International Accounting Standards Board- created in 2001
41 International Accounting Standards (IASs)
9 International Financial Reporting Standards (IFRSs) and revised many of the standards the IASC issued.
The CAP issued
Accounting Research Bulletins (ARBs)
The APB issued
Accounting Principles Board Opinions (APBOs)
The FASB issued
Statements of Financial Accounting Standards (SFASs)