first dq - from year to year. The bylaws call for at least...

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The AICPA quickly adopted the Wheat Committee recommendations, and the FASB became the offi cial body charged with issuing accounting standards. The structure of the FASB is as follows. A board of trustees nominated by organizations whose members have special knowledge and interest in fi nancial reporting is selected. The organizations originally chosen to select the trustees were the American Accounting Association; the AICPA; the Financial Executives Institute; the National Association of Accountants (The NAA’s name was later changed to Institute of Management Accountants in 1991), and the Financial Analysts Federation. In 1997 the board of trustees added four members from public interest organizations. The board that governs the FASB is the Financial Accounting Foundation (FAF). The FAF appoints the Financial Accounting Standards Advisory Council (FASAC), which advises the FASB on major policy issues, the selection of task forces, and the agenda of topics. The number of members on the FASAC varies
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Unformatted text preview: from year to year. The bylaws call for at least twenty members to be appointed. However, the actual number of members has grown to about thirty in recent years to obtain representation from a wider group of interested parties. The FAF is also responsible for appointing the members of the FASB and raising the funds to operate the FASB. Until 2001 most of the funds raised by the FAF came from the AICPA and the largest public accounting fi rms. However, the Sarbanes-Oxley Act of 2002 required the FASB to be fi nanced by fees assessed against publicly traded companies, instead of by donations from the interested parties in the private sector. The purpose of this action was to increase the independence of the FASB from the constituents it serves. The FAF currently collects Accounting in the United States since 1930 9 c01Thedevelopmentofaccountingthe9 Page 9 8/5/10 10...
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