What is the Board of Directors for Accounting?
The Council for Accounting Principles served as a deliberate body for the US Institute of Certified Public Accountants (AICPA), professional associations for persons in the accounting industry. This Council offered opinions and statements about the generally accepted accounting principles (GAAP) in the United States from 1959 to 1973. These standards use accountants with federal agencies and corporations. AICPA has replaced the Council for Financial Accounting Standards (FASB) Council in 1973 to increase sensitivity to accounting questions.
The historical reputation of AICPA has provided legitimacy to the Board of Directors during its short life. AICPA was created in 1887 as a leading industrial organization for accountants who work in the US, this institute set ethical, educational and professional standards for accountants at a time when corporations expanded worldwide. The first AICPA Council was the ACCOUNPOSTUP TING Committee, which existed from 1936 to 1959.The work of the Committee on the prevention of corrupt accounting principles that contributed to the 1929 stock market accident.
The US Securities and Stock Exchange Commission (SEC) relied on the Council for Accounting Principles for the purpose of setting accounting standards. SEC is entitled to determine the standards for accounting standards by publicly traded companies according to the 1934 Securities Act. SEC officials have been working with AICPA since 1934 to use the accounting knowledge of the Organization for Public Good. This partnership of the public and private sectors allows SEC to consult with leading accounting books to maintain accurate accounting books. Most of the opinions of the Board of Directors for Accounting and FASB have been incorporated into federal policies on public accounting.
The Council issued 35 opinions and statements during the 14-YEAR existence. Corporations and government agencies still use 19 views on Council as part of GAAP. Decision of the Council of December 1967The criteria for reporting depreciation of assets and postponed compensation were valid. In August 1970, the Council for Accounting Principles created principles for reporting asset transfer within business combinations and mergers. In October 1972, the Board of Directors set standards for company reporting used as payments for employees.
AICPA replaced the Council for FASB accounting principles in 1973 due to the criticism of the previous Council. The Council for Accounting Principles was considered to be of insufficient independent of the federal government and corporations. The FASB design is mostly informed about the failure of its past records. FASB requires its members to resign from the corporate councils and sell business interests during their five -year term. These requirements allow FASB members to create an accounting standard independent of personal and financial interests.