SEC has the authority to establish US GAAP but generally lets the accounting profession establish it and

self regulate.
Started in 1934 with the SEC Securities Exchange Act of 1934 required all publicly traded companies
to follow SEC rules/regulations. Issued Regulation SX, Financial Reporting Releases, Accounting Series
Releases, Interpretive Releases, Staff Accounting Bulletins, EITF Topic D, SEC Observer comments.
From 1939 to 1959, the Committee on Accounting Procedure, a part-time committee of the AICPA
issued Accounting Research Bulletins
From 1959 to 1973, the Accounting Principles Board replaced the Committee on Accounting Procedure
and issued Accounting Principles Board Opinions and interpretations.
From 1973 on, Financial Accounting Standards Board, an independent full time organization, issued
Statements of Financial Accounting Standards, FASP Interpretations, FASB Technical Bulletins, Emerging
Issues Task Force Statements, FASB Staff Positions, FASB Implementation Guides, and Statements of
Financial Accounting Concepts until July 1, 2009, where everything was consolidated into the FASB
Accounting Standards Codification.
FASB has 7 full time members that serve 5 year terms (possible of 10). Must sever connections with
firms/institutions.
Literature Included in the Codification: FEDPRIA
FASB: Statements of Financial Accounting Standards, Interpretations, Technical Bulletins, Staff Positions,
Staff Implementation Guides, Statement No. 138 Examples
Emerging Issues Task Force (EITF) Abstracts and Topic D
Derivative Implementation Group Issues
Accounting Principles Board Opinions
Accounting Research Bulletins
Accounting Interpretations
AICPA: Statements of Position, Auditing and Accounting Guides, Practice Bulletins, Technical Inquiry
Service
SEC Standards are included in the Codification for reference if relevant.
FASB updates the Codification with Accounting Standards Updates
Ongoing Standards Setting majority vote of Board required to approve Exposure Drafts submission to
public for comment, FASB staff take in consideration comments and revise, Board re-deliberates, FASB
staff prepares Accounting Standards Update, need another Board majority vote to amend the
Codification.