History and Role of Standard Setting Bodies
... To accomplish this goal, a set of generally accepted accounting principles (GAAP) have been established by accounting rule-making bodies and/or by historical and universal implementation. The bodies that currently develop accounting principles in the United States are the Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), the Financial Accounting Standards Board (FASB), and the Governmental Accounting Standards Board (GASB). ... The SEC has the responsibility of oversight of the standard setting bodies. ... Though the CAP did provide answers to accounting problems, it was not proactive in setting up a structure for accountants to follow. ... The implementation of the present system with FASB as the standard setting body is working well. ... Some of the points of contention are: having different standards for large and small companies, and who should be the primary standard setter for non-profit and governmental agencies.