Which organization is recognized for authoritative accounting standards, and when was it formed?

Which organization is recognized for authoritative accounting standards, and when was it formed?

• A. FASB – Formed 1973
• B. AICPA – Formed 1917
• C. FASB – Formed 1984
• D. IASB – Formed 1989

Answer: (A)

In the United States, the authoritative accounting standards for GAAP are set by the Financial Accounting Standards Board, which was formed in 1973. This board was created to develop and issue the standards that the SEC recognizes as GAAP, taking over from the older standard-setter and providing a centralized, formal framework for financial reporting. The other option’s organization is a professional association that historically issued guidance but is not the official GAAP standard-setter, and the international board handles IFRS rather than U.S. GAAP. So, the combination of the Financial Accounting Standards Board and its 1973 formation best fits the question.

In the United States, the authoritative accounting standards for GAAP are set by the Financial Accounting Standards Board, which was formed in 1973. This board was created to develop and issue the standards that the SEC recognizes as GAAP, taking over from the older standard-setter and providing a centralized, formal framework for financial reporting. The other option’s organization is a professional association that historically issued guidance but is not the official GAAP standard-setter, and the international board handles IFRS rather than U.S. GAAP. So, the combination of the Financial Accounting Standards Board and its 1973 formation best fits the question.