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The Financial Accounting Standards Board was established because many groups interested in financial reporting believed that...

The Financial Accounting Standards Board was established because many groups interested in financial reporting believed that the Accounting Principles Board was not effective. Discuss the apparent advantages that the FASB has over its earlier counterpart, the APB. ON your OWN WORDS

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Answer #1

1. Full-time, remunerated membership

2. Greater autonomy

3. Broader representation

4. Increased independence

1. Full-time, remunerated membership. FASB members are well-paid, full-time members, appointed for renewable five-year terms. The APB members were unpaid and part-time.

2.Greater autonomy. The APB was a senior committee of the AICPA, whereas the FASB is not part of any single professional organization. It is appointed by and answerable only to the Financial Accounting Foundation.

3. Broader representation. All APB members were required to be CPAs and members of the AICPA. Currently, it is not necessary to be a CPA to be a member of the FASB.

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