http://www.authorstream.

com/Pres
entation/ghdavani-1238820-
history-of-accounting-standards/

http://www.accountsguy.net/2013/
12/StandardSettingProcess.html#
gsc.tab=0

http://www.authorstream.com/Pres
entation/ghdavani-1238820-
history-of-accounting-standards/

http://slideplayer.com/slide/49741
91/
http://financetrain.com/financial-
reporting-standard-setting-bodies-
and-regulatory-authorities/

Standard-setting Bodies
The two key standard-setting bodies are International
Accounting Standards Board (IASB), and Financial Accounting
Standards Board (FASB).
The FASB establishes the Generally Accepted Accounting
Principles in the United States (US GAAP), while the IASB
establishes International Financial Reporting Standards (IFRS)
outside the US.
Apart from these, many countries have their own reporting
standards. Across the world, many countries are moving
towards the adoption of IFRS. For example, countries like India
have already taken steps towards the adoption of IFRS. Even
FASB is aggressively working towards converging the US
GAAP with the IFRS. Such convergence and the adoption of a
global standard offers many benefits as more and more
businesses now have global operations.
It is important to note that some of the older standards of IASB
are known as International Accounting Standards (IAS).
The IFRS Foundation, as a part of IASB, has the following
principle objectives:
 To develop a single set of high quality, understandable,
enforceable and globally accepted international financial
reporting standards (IFRSs) through its standard-setting body,
the IASB;
To promote the use and rigorous application of those standards;
To take account of the financial reporting needs of emerging
economies and small and medium-sized entities (SMEs); and
To bring about convergence of national accounting standards
and IFRSs to high quality solutions.
Source: www.ifrs.org

Regulatory Authorities
With respect to the capital markets, in the US the key regulatory
authority is the Securities Exchange Commission (SEC), and in
the UK it is Financial Services Authority (FSA).
The SEC establishes rules and regulations that govern any
company issuing securities or involved in capital markets in the
US. The SEC provides the filing requirements for the publicly
traded companies in the United States. These company filings,
which are available on the SECs website are the most important
source of information for financial analysts.
 International Organization of
Securities Commissions (IOSCO)
IOSCO is a multilateral organization of securities regulators.
Securities regulators from across the world are members of the
IOSCO. Together, its members regulate over 95% of the worlds
securities markets. SEC and FSA are also members of IOSCO.
IOSCO works with the goal of achieving uniform financial
regulations across countries and has three key objectives:
Protecting investors
Ensuring that markets are fair, efficient and transparent
Reducing systemic risk

http://www.quickmba.com/accounting/fin/standards/

http://www.accountingnotes.net/accounting-standards/standard-setting-in-india-an-overview/5446

Standard Setting in
India: An Overview
by : | category : Accounting Standards
Standards Setting Bodies in India:
In India, we have standard setting bodies
which are, in practice, the national
regulators, who have the legal authority to
set and implement regulatory rules and
procedures in the financial sector. For
example, the Reserve Bank of India (RBI) is
responsible for regulation and supervision of
banks and other financial institutions and
money, foreign exchange and Government
securities markets.
The Securities and Exchange Board of India
(SEBI) is charged with the duty to protect
the interests of investors in securities and to
promote the development of, and to regulate
the securities market by measures as it
deems fit.
The Insurance Regulatory and Development
Authority (IRDA) is entrusted with the task
of protecting the interests of the policy
holders, to regulate, promote and ensure
orderly growth of the insurance industry and
for matters therewith or incidental thereto.
The Ministry of Corporate Affairs, inter alia,
provides legal framework for incorporation
and proper functioning of companies,
surveillance over the working of corporate
sector to ensure financial health and
compliance with statutory provisions,
prescribing cost audit rules and appointment
of cost auditors, investigation of complaints,
coordination with other regulatory bodies
such as other Government departments and
autonomous institutions like SEBI, RBI and
stock exchanges and monitoring the
development of professional bodies, i.e.,
Institute of Chartered Accountants of India
(ICAI), Institute of Company Secretaries
(ICS) and Institute of Cost and Works
Accountants of India (ICWAI).
Further, we have self-regulatory
organizations such as the Indian Banks
Association (IBA), Fixed Income Money
Market and Derivatives Association of India
(FIMMDA), Association of Merchant
Bankers of India (AMBI), Association of
Mutual Funds of India (AMFI), Foreign
Exchange Dealers Association of India
(FEDAI), Primary Dealers Association of
India (PDAI), clearing house associations
and stock exchanges, among others, which
play a critical role in developing codes of
conduct and setting and maintaining
standards for different segments of the
financial system with a view to promoting
and protecting interests of institutions,
investors and depositors in India.
Indias Standing Committee on
International Financial Standards
and Codes:
With a view to promote and assist in the task
of adoption and implementation of
International Financial Standards in India, a
Standing Committee on International
Financial Standards and Codes was set up on
December 8, 1999.
The Committee has been entrusted with the
task of monitoring developments in global
standards and codes being evolved by
standards setting bodies as part of the effort
to create a sound international financial
architecture and to consider all aspects of
applicability of these standards to Indian
Financial System.
The Committee is also assigned with the task
of periodically reviewing the progress in
regard to the codes and practices and
making available its reports to all concerned
organisations in public and private sectors
with an aim of sensitizing public opinion and
creating awareness for the concerned subject
areas.
Advisory Groups in India:
To assist the Standing Committee, Advisory
Groups were constituted in different areas of
the financial system under the Chairmanship
of eminent experts, generally not holding
official positions in government or other
regulatory bodies in ten major areas
accounting and auditing, banking
supervision, bankruptcy, corporate
governance, data dissemination, fiscal
transparency, insurance regulation,
transparency of monetary and financial
policies, payments and settlement system
and securities market regulation.
The Advisory Groups had, in general,
the following terms of reference:
(i) To study present status of applicability
and relevance and compliance of relevant
standards and codes,
(ii) To review the feasibility of compliance
and the time frame over which this could be
achieved given the prevailing legal and
institutional practices,
(iii) To compare the levels of adherence in
India vis-a-vis in industrialised and also
emerging economies particularly to
understand Indias position and prioritise
actions on some of the more important codes
and standards, and
(iv) To chalk out a course of action for
achieving the best practices.
Standards set by ASB:
Recognising the need to harmonies the
diverse accounting policies and practice in
India and keeping in view the international
development in the field of accounting, the
Institute of Chartered Accountants of India
constituted the Accounting Standards Board
(ASB) in April 1977.
The ASB is entrusted with the
following functions:
(1) To formulate accounting standards which
may be established by the Council of ICAI in
India. While formulating standards, the ASB
is required to take into consideration the
applicable laws, customs and usages and
business environment; it is also required to
give due consideration to International
Accounting Standards issued by IASC and to
integrate them, to the extent possible, in the
light of the conditions and practices
prevailing in India.
(2) To propagate the Accounting Standards
and persuade the concerned parties to adopt
them in the preparation and presentation of
financial statements.
(3) To issue guidance notes on the
Accounting Standards and give clarifications
on issues arising therefrom.
(4) To review the Accounting Standards at
periodical intervals.
The date from which a particular standard
will come to effect, as well as the class of
enterprises to which it will apply, will also be
specified by the Institute. Unless otherwise
stated, no standard will have retrospective
application.
Normally before formulating the standards,
ASB will hold discussions with the
representatives of the Government, Public
Sector Undertakings, Industry and other
organisations, for ascertaining their views.
An exposure draft of the proposed standard
will be prepared and issued for comments by
members of the Institute and the public at
large. After considering the comments
received, the draft of the proposed standard
will be finalised by ASB and submitted to the
Council which will study it, modify it if
necessary and issue it under its own
authority.
Existing Procedure for Setting
Standards:
1. The existing procedure for
formulating and issuing accounting
standard followed by the Accounting
Standards Board of the ICAI is as
follows:
i. ASB determines the broad areas in which
Accounting Standards need to be formulated
and the priority with regard to issuance
thereof.
ii. In the preparation of Accounting
Standard, ASB is assisted by Study Groups
constituted to consider specific subjects. In
the formation of Study Groups, provision is
made for wide participation by the members
of the Institute and others.
iii. The Board considers the draft as
submitted by the study group and finalizes
the same for issue to all members of the
Council of the ICAI as well as to the bodies
listed below for their comments.
Associated Chambers of Commerce and
Industry, Federation of Indian Chambers of
Commerce and Industry, Institute of Cost
and Works Accountants of India, Standing
Conference of Public Enterprises, Institute of
Company Secretaries of India, Central Board
of Direct Taxes, Department of Company
Affairs, Comptroller and Auditor General of
India, Reserve Bank of India, Indian Banks
Association, Securities and Exchange Board
of India, Confederation of Indian industries.
iv. ASB holds a meeting with the
representatives of specified outside bodies
listed above to ascertain their views.
v. On the basis of the comments received
from the Council members as well as the
outside bodies, the Board finalizes the
Exposure Draft and exposes it for public
comments.
a. To all members of the profession through
the medium of their Journal.
b. To principal Chambers of Commerce and
Industry through direct communications.
c. To all recognised Stock Exchanges through
direct communication.
d. To the Institute of Cost and Works
Accountants of India through direct
communication.
e. To the Institute of Company Secretaries of
India through direct communication.
f. To the Ministry of Corporate Affairs,
Central Board of Direct Taxes and the
Comptroller and Auditor General by direct
communication.
g. To principal financial institutions, Reserve
Bank of India, Life Insurance Corporation,
General Insurance Corporation, Unit Trust
of India and Indian Banks Association by
direct communication.
h. To all Regional Councils and Branches of
the ICAI by direct Communication.
i. To all Council Members.
j. To Securities and Exchange Board of India
by direct communication.
vi. After taking into account the comments
received from various quarters, the draft of
the proposed standard is finalised by the
Board and submitted to the Council for its
consideration.
vii. The Council of the Institute considers the
final draft of the proposed Standard, and if
necessary, modifies the same in consultation
with ASB.
2. The Accounting Standard on the relevant
subject is then issued under the authority of
the Council.
The Advisory Group on Accounting and
Auditing set up by Reserve Bank of India in
its report (January 2001) has proposed the
following procedure for standard setting in
India.

Existing Standards:
In India, the Accounting Standards Board
(ASB) of the Institute of Chartered
Accountants of India (ICAI) is responsible
for setting Accounting Standard (AS). The
ASB comprises members of the Central
Council of ICAI as well as certain members
from the professional, industry and various
other segments and government agencies.
The ASB of ICAI has issued 32
accounting standards so far. The list of
accounting standards issued is given
hereunder:
1. AS-1 Disclosure of Accounting Policies.
2. AS-2 (Revised), Valuation of Inventories.
3. As-3 (Revised) Cash Flows Statements.
4. AS-4 (Revised) Contingencies and Events
Occurring after the Balance Sheet Date.
5. AS-5 (Revised) Net Profit or Loss for the
Period, Prior Period Items and Changes in
Accounting Policies.
6. AS-6 (Revised) Depreciation Accounting.
7. AS-7 (Revised) Accounting for
Construction Contracts.
8. AS-8 Accounting for Research and
Development. (Withdrawn and included in
AS26)
9. AS-9 Revenue Recognition.
10. AS-10 Accounting for Fixed Assets.
11. AS-11 (Revised) Accounting for the effects
of changes in Foreign Exchange Rates.
12. AS-12 Accounting for Government
Grants.
13. AS-13 Accounting for Investments.
14. AS-14 Accounting for Amalgamations.
15. AS-15 Employee Benefits (Revised) 2005.
16. AS-16 Borrowing Costs.
17. AS-17 Segment Reporting.
18. AS-18 Related Party Disclosures.
19. AS-19 Leases.
20. AS-20 Earnings Per Share.
21. AS-21 Consolidated Financial
Statements.
22. AS-22 Accounting for Taxes on Income.
23. AS-23 Accounting for Investments in
Associates in Consolidated Financial
Statements.
24. AS-24 Discontinuing Operations.
25. AS-25 Interim Financial Reporting.
26. AS-26 Intangible Assets.
27. AS-27 Financial Reporting of Interest in
Joint Venture.
28. AS-28 Impairment of Assets.
29. AS-29 Provisions, Contingent Liabilities
and Contingent Assets.
30. AS-30 Financial Instruments:
Recognition and Measurement.
31. AS-31 Financial Instruments:
Presentation.
32. AS-32 Financial Instruments:
Disclosures.
The Institute of Chartered Accountants of
India (ICAI), has decided to conform with
the International Financial Reporting
Standards (IFRS) issued by the International
Accounting Standards Board (IASB),
London, for all accounting periods
commencing on or after April 1, 2011.
As in countries like Australia, New Zealand
and members of the European Union (EU),
the IFRSs will also be adopted in India for
listed/public interest entities such as banks,
insurance companies and others.
With this decision India joins the 102
countries that presently employ IFRSs in
their preparation of financial statements. By
2011, this number is expected to reach 150.
Of the 32 accounting standards issued by
ICAI, 25 are already based on International
standards. Hence, the transition to IFRSs
should not pose a problem for Indian
accountants.
ICAI will further consult with the National
Advisory Committee on Accounting
Standards established by the Ministry of
Corporate Affairs, Government of India, and
various regulators such as the Reserve Bank
of India, the Insurance Regulatory and
Development Authority and the Securities
and Exchange Board of India, to facilitate
the transition.

They are:
1. Economic Entity Assumption
2. Monetary Unit Assumption
3. Time Period Assumption
4. Cost Principle
5. Full Disclosure Principle
6. Going Concern Principle
7. Matching Principle
8. Revenue Recognition Principle
 9. Materiality
10. Conservatism
Let's take a minute to look at what each of my parts mean:
The economic entity assumption means that any activities of
a business must be kept separate from the activities of the
business owner.
The monetary unit assumption means that only activities that
can be expressed in dollar amounts can be included in
accounting records.
The time period assumption means that business activities
can be reported in distinct time intervals. These intervals may
be in weeks, months, quarters, or in a fiscal year. Whatever the
time period is, it must be identified in the financial statement
dates.
The cost principle refers to the historical cost of an item that is
reported on the financial statements. Historical cost is the
amount of money that was paid for an item when purchased
and is not changed to account for inflation.
The full disclosure principle means that all information that is
relative to the business be reported either in the content of the
financial statements or in the notes to the financial statements.
The going concern principle refers to the intent of a business
to continue operations into the foreseeable future and not to
liquidate the business.
The matching principle refers to the manner in which a
business reports income and expenses. This principle requires
that businesses use the accrual form of accounting and match
business income to business expenses in a given time period.
For example, a sales expense should be recorded in the same
accounting period that sales income was made.
The revenue recognition principle addresses the manner in
which revenue, or income, is recognized. This standard requires
that revenue be reported on the income statement in the period
in which it is earned.
The materiality principle refers to the measure of importance
of a misstatement in accounting records. For example, if the
price of an asset is understated by $10.00, will that
misstatement have enough effect on the financial statements to
matter? This is a gray area in accounting standards that
requires professional judgment to be used.
The last principle that makes me up is conservatism.
Conservatism is the principle that calls for potential expenses
and liabilities to be recognized immediately if you are unsure
whether they will actually occur or not, but potential revenue not
to be recognized until it is actually received.

https://en.wikipedia.org/wiki/List_of_accountancy_bodies

Accounting standard-setting bodies[edit]

Accounting standard setting bodies are national or international
organisations that have been delegated responsibility for
setting Generally Accepted Accounting Principles by statute in a
country or jurisdiction.
International
 The International Accounting Standards
Board issues IFRS
The International Federation of Accountants (with
its International Public Sector Accounting Standards
Board - IPSASB) issues IPSAS for Government/Public
entitiesaccounting.
The IFRS Foundation

India
National Advisory Committee on Accounting
Standards (NACAS) with the aide and advice of Institute of
Chartered Accountants of India and Institute of Cost
Accountants of India
Getting replaced soon by NFRA in the Company Bill 2012.

United Kingdom and Ireland

Accounting Standards Board

United States
Financial Accounting Standards Board (FASB)

AICPA Accounting Principles Board (APB)

Governmental Accounting Standards Board (GASB)

Federal Accounting Standards Advisory Board (FASAB)

https://en.wikipedia.org/wiki/Institute_of_Cost_Accountants_of_India

Institute of Cost Accountants of India

From Wikipedia, the free encyclopedia
Institute of Cost Accountants of India

ICAI Emblem

Abbreviation ICAI

Formation 28 May 1959; 57 years ago

Legal status Body corporate established by

a special Act of the Parliament
of India

Objective Develop and Regulate the

profession of Cost &
Management
Accountancy and Cost Audit &
in India

Headquarters Kolkata, India

Coordinates 22.558103N 88.353672E

Region India
served
 Membership > 69,000

Students > 5,50,000

Member's ACMA, FCMA

designations

President CMA Manas Kumar Thakur

Vice CMA Sanjay Gupta

President

IFAC member 7 October 1977

since

Regional NIRC, New Delhi (Northern

Offices India), SIRC, Chennai(Southern
India), WIRC, Mumbai (Western
India), EIRC, Kolkata (Eastern
India)

Official The Management Accountant

Organ (published monthly)

Website http://www.icmai.in

The Institute of Cost Accountants of India (ICAI) [previously known as the Institute of Cost &
Works Accountants of India (ICWAI)] is a premier statutory professional accountancy body in India
with the objects of promoting, regulating and developing the profession of Cost Accountancy. It is the
only licensing cum regulating body of Cost & Management Accountancy profession in India. It
recommends the Cost Accounting Standards to be followed by companies in India to which statutory
maintenance of cost records applicable. ICAI is solely responsible for setting the auditing and
assurance standards for statutory Cost Audit to be followed in the Audit of Cost statements in India.
It also issues other technical guidelines on several aspects like Internal Audit, Management
Accounting etc. to be followed by practising Cost Accountants while discharging their services. It
works closely with the industries, various departments of Government of India, State governments in
India and other Regulating Authorities in India e.g. Reserve Bank of India, Insurance Regulatory and
Development Authority, Securities and Exchange Board of India etc. on several aspects of
performance, cost optimisation and reporting.
The ICAI is a Founder Member of the International Federation of
Accountants (IFAC),[1] Confederation of Asian and Pacific Accountants (CAPA)[2] and South Asian
Federation of Accountants (SAFA).[3] ICAI is a member of the National Foundation of Corporate
Governance(NFCG).[4] The headquarters of ICAI is situated in Kolkata, and operates through its four
regional councils located at Kolkata, Chennai, Delhi and Mumbai, 94 chapters in India and 78
chapters abroad.

https://en.wikipedia.org/wiki/Institute_of_Chartered_Accountants_of_India

Institute of Chartered Accountants of India

From Wikipedia, the free encyclopedia

Institute of Chartered
Accountants of India

Emblem of ICAI as given by Sri Aurobindo

Abbreviation ICAI

Motto Ya Aesh Suptaeshu Jagriti

Formation 1 July 1949; 67 years ago

Objective Regulate
the auditing and financial
accounting profession
in India

Headquarters ICAI Bhawan, Post Box No.

7100, Indraprastha Marg,
New Delhi 110002, India

Coordinates 28.627815N
77.242135E

Region India
served

Membership 253,369 (1st April 2016)[1]

Students Approx. +11,75,000[2]

Member's A.C.A. and F.C.A. (A.T.C.

designations also available with IPCC
level)

Official English, Hindi

languages

President CA. M. Devaraja Reddy

Vice CA. Nilesh Vikamsey

President

Secretary Shri V. Sagar[3]

 Governing Council
body

IFAC member 7 October 1977

since

Regional New Delhi (NIRC)

Offices Mumbai (WIRC)
Kolkata (EIRC)
Chennai (SIRC)
Kanpur (CIRC)

Branches 146 Indian Branches and

26 Overseas Chapters

Website www.icai.org

The Institute of Chartered Accountants of India (ICAI) is the national professional accounting
body of India. It was established on 1 July 1949 as a body corporate under the Chartered
Accountants Act, 1949 enacted by the Parliament (acting as the provisional Parliament of India) to
regulate the profession of Chartered Accountancy in India. ICAI is the second largest professional
Accounting & Finance body in the world in terms of membership, after American Institute of Certified
Public Accountants. ICAI is the only licensing cum regulating body of the financial
audit and accountancy profession in India. It recommends the accounting standards to be followed
by companies in India to The National Financial Reporting Authority (NFRA) and sets the accounting
standards to be followed by other types of organisations. ICAI is solely responsible for setting the
auditing and assurance standards to be followed in the audit of financial statements in India. It also
issues other technical standards like Standards on Internal Audit (SIA), Corporate Affairs
Standards (CAS) etc. to be followed by practicing Chartered Accountants. It works closely with
the Government of India, Reserve Bank of India and the Securities and Exchange Board of India in
formulating and enforcing such standards.
Members of the Institute are known as Chartered Accountants. However, the word chartered does
not refer to or flow from any Royal Charter. Chartered Accountants are subject to a published Code
of Ethics and professional standards, violation of which is subject to disciplinary action. Only a
member of ICAI can be appointed as statutory auditor of an Indian company under the Companies
Act, 2013. The management of the Institute is vested with its Council with the president acting as its
Chief Executive Authority. A person can become a member of ICAI by taking prescribed
examinations and undergoing three years of practical training. The membership course is well
known for its rigorous standards. ICAI has entered into mutual recognition agreements with other
professional accounting bodies world-wide for reciprocal membership recognition. ICAI is one of the
founder members of the International Federation of Accountants (IFAC), South Asian Federation of
Accountants (SAFA), and Confederation of Asian and Pacific Accountants (CAPA). ICAI was
formerly the provisional jurisdiction for XBRL International in India.
The Institute of Chartered Accountants of India was established under the Chartered Accountants
Act, 1949 passed by the Parliament of India with the objective of regulating accountancy profession
in India.[4] ICAI is the second largest professional accounting body in the world in terms of
membership second only to AICPA.[5] It prescribes the qualifications for a Chartered Accountant,
conducts the requisite examinations and grants license in the form of Certificate of Practice. Apart
from this primary function, it also helps various government agencies like RBI, SEBI,[citation
needed]
MCA, CAG, IRDA, etc. in policy formulation. ICAI actively engages itself in aiding and
advising economic policy formulation. For example, ICAI has submitted its suggestions on the
proposed Direct Taxes Code Bill, 2010. It also has submitted its suggestions on the Companies Bill,
2009. The government also takes the suggestions of ICAI as expert advice and considers it
favorably. ICAI presented an approach paper on issues in implementing Goods and Service Tax in
India to the Ministry of Finance. In response to this, Ministry of Finance has suggested that ICAI take
a lead and help the government in implementing Goods and Services Tax (GST).[6] It is because of
this active participation in formulation economic legislation, it has been designated by A. P. J. Abdul
Kalam Azad as a "Partner in Nation Building".

http://www.ifrs.org/About-us/IASB/Pages/Home.aspx

International Accounting Standards Board (IASB)

The IASB (International Accounting Standards Board) is the independent

standard-setting body of the IFRS Foundation.
All meetings of the IASB are held in public and webcast. In fulfilling its
standard-setting duties the IASB follows a thorough, open and transparent
due process of which the publication of consultative documents, such as
Discussion Papers and Exposure Drafts, for public comment is an important
component.
The IASB engages closely with stakeholders around the world, including
investors, analysts, regulators, business leaders, accounting standard-setters
and the accountancy profession.

Here you will find information on the various bodies that form the
IASB and about ourstandard-setting process.

http://www.accountingfoundation.org/jsp/Foundation/Page/FAFSectionPage&cid=1351027541272
Companies, not-for-profits, governments, and other
organizations use accounting standards as the foundation
upon which to provide users of financial statements with the
information they need to make decisions about how well an
organization or government is managing its resources.

That information is used to decide.

How to invest capital
Where to lend money
Where to donate money
Whether public officials are spending tax dollars wisely.

Accounting has a long history. Double entry bookkeeping

debits on the left, credits on the right began in Italy,
hundreds of years ago. It was first codified in the 15th
Century by a Franciscan monk
The pivotal economic event of the 20th century, the Great
Depression, focused the U.S. on the need for comprehensive
accounting reform. Many market participants felt that poor
accounting and reporting procedures helped cause the
downturn. In 1930, the American Institute of Accountants
(known as the AICPA since 1957) and the New York Stock
Exchange began an attempt to revise financial reporting
requirements. Shortly thereafter, passage of the Securities
Act of 1934 chartered the Securities and Exchange
Commission, and gave the SEC the power to oversee
accounting and auditing methods.

For nearly 40 years, the SEC looked to bodies established by

the accounting profession to develop and establish
accounting standards.

SEC Commission, 1936 (Courtesy, SEC Historical Society)

By the 1970s, market participants thinking about

accounting standard setting evolved, as they came to believe
in the importance of an independent standard-setting
structure, separate and distinct from the accounting
professionso that the development of standards would be
insulated from the self-interests of practicing accountants
and their clients. Following a detailed study, the accounting
profession in 1972 recommended creation of a new body, the
Financial Accounting Foundation, to serve as the nations
accounting standard-setting authority.
Through the FAF, the FASB in 1973 became the designated
organization in the private sector for setting standards that
govern the preparation of corporate financial reports along
with not-for-profit organizations.

In 1984, the Government Accounting Standards Board

(GASB) was formed under the FAF umbrella to issue
standards and other communications that result in decision-
useful information for users of government financial
reports. Today owners of municipal bonds, members of
citizen groups, legislators, and oversight bodies rely on this
financial information to shape public policy and make wise
investments.

Throughout its history, the SEC has relied on the private

sector to create and implement accounting standards.
Today, the FASB and GASB remain at the forefront of
fulfilling the SECs mandate on behalf of the U.S. capital
markets.