Historical frame
- Kind
- event
- Period
- 1973
- Jurisdiction
- United States
Full-time members and a separate organizational structure changed how private-sector accounting standards were developed.
Questions to carry forward
- How can full-time board membership affect standard setting?
- Why must a new standard setter explain how earlier guidance will be treated?
Claim disciplineEvidence boundaries
- FASB did not start with a blank page; predecessor literature and accumulated practice remained relevant through transition rules.
The Financial Accounting Standards Board (FASB) began work in 1973, replacing the Accounting Principles Board. FASB used full-time members within an organization separate from the professional association that had sponsored the earlier board. Its process includes research, public discussion, and opportunities for comments on proposed standards.
The change concerned both the organization and its work. Existing accounting guidance did not vanish when the new board began. FASB developed new standards while dealing with earlier requirements. This history explains why a source's date and issuing body matter, but current accounting questions still require current guidance.