Development of accounting standards, Accounting principles have been developed through a historical way. Principles can be acceptable if most professional bodies allow it. These principles can be phrased as GAAP, which acts as constitution profitable or no -profitable or governmental organization. some international organization have played a vital role in establishing Development of accounting standards. The following merit attention:
|☑ ACIPA||☑ AAA|
|☑ FASB||☑ APB|
|☑ SEC||☑ FEI|
American institute of certified public accountants (AICPA) is a international professional body of CPAs. It is the dominant institution over the establishment of accounting principles and standards. The main two committee of it is accounting standard committee and auditing standard committee are influential in providing input to the FASB and SEC.
Financial accounting standard board (DASB) communicates its performance about establishing principles through various publications, more specifically statement of financial accounting standard (SFAS) Theses statement outlines the generally accepted accounting principles.
Under Security Exchange Act, Creation of Securities exchange & commission (SEC) is a government agency that administers a number of act dealing with securities. The SEC has the authority to prescribe accounting and reporting practices for companies under jurisdiction.
Governmental accounting standard board (GASB) issues statement on accounting and financial reporting in the governmental area. It is responsible for establishing the new governmental accounting concepts and standards.
American Accounting Association (AAA) Consists largely of accounting educators. The body aims at encouraging research and study at the basic accounting level and developing accounting. They publish three types of journals to serve the propose namely:
- The Accounting Review
- Accounting Horizons &
- Issues in Accounting Education
A standard setting body in the USA that operated from 1959 to 1973. The board was set by the AICPA. It’s objective is to undertake a program of research into the problems of financial reporting. It provides to series of publications namely: Opinions of the APB and statements of the APB.
Financial Executive Institute (FEI) is an organization established in 1931 and its members are primarily financial policy-making executives. The body consists of slightly more than 13,000 financial officers and 7,000 companies in USA and Canada Development of accounting standards.
The institute of Management Accountants (IMA) is sought to provide members personal and professional development opportunities through education, association with the business professional and certification.
The institute of Internal Auditors (IIA) is the primary international professional association dedicated to the promotion and development of the practice of internal auditing. This comprises of more than 70,000 members in 129 countries in the world.