Accounting and Auditing Research and Databases: Practitioner's Desk Reference

American Institute of Certified Public Accountants (AICPA)

Before the establishment of the FASB in 1973, the AICPA was the recognized standard-setting body for the private sector. The AICPA Committee on Accounting Procedures published 51 ARBs from 1939 to 1959, dealing with a wide spectrum of accounting issues. Because of FASB approval and clearance, some of the ARBs from the AICPA still apply. However, FASB Statements have superseded some ARB pronouncements and modified the application of others.

In 1959, the APB became the standard-setting body. The APB issued 31 APBOs, binding on all CPAs. The APB also issued several unofficial interpretations and four nonauthoritative statements addressing broad concepts rather than specific accounting principles.

Following the formation of the FASB, the AICPA created an Accounting Standards Division to influence the development of accounting standards. The Accounting Standards Executive Committee (AcSEC) of the Accounting Standards Division became the spokesperson for the AICPA on financial accounting matters. AcSEC responds to FASB and SEC accounting pronouncements by issuing comment letters and preparing issues papers (financial accounting and reporting issues for the FASB to consider). AcSEC also often publishes brief notes and news releases in the AICPA's monthly online publication, the CPA Letter, which reaches more than 340,000 members.

In the past, AcSEC also issued Statements of Position (SOPs) to propose revisions of AICPA-published ...