Early History 1887 1903

1
Early History 1887 - 1903

• AIA formed 1887
• Nation in midst of economic growth
• Labor intensive giving way to capital intensive
• U.S. could not supply needed capital
• Majority of capital from England
• British investors sent British accountants

2
19031938 Slow Growth of Standards

• 1903 - U.S. Steel first audited F/S
• FTC and FRB created
• Both became concerned about quality of F/S
• 1917 Uniform Accounts published
• 1918 Approved Methods published

3
1903 1938 Slow Growth (cont.)

• Stock market crash of 1929
• Communication between AIA and NYSE
• AICPA Committee On Cooperation with Stock
  Exchanges
• NYSE Committee on Stock List
• Securities Act of 1933
• SEC Act of 1934

4
1903 1938 Slow Growth (cont.)

• 1933 1934 Acts gave SEC authority to prescribe
  accounting standards
• Struggle within SEC as to who should set
  standards
• 3 voted for private sector, 2 for SEC
• ASR 4 issued in 1938 substantial
  authoritative support

5
CAP 1938-1959

• 1936 AIA created special CAP
• 1938 expanded CAP created
• Issued ARBs and ATBs
• Chose not to develop comprehensive statement or
  conceptual framework
• Pragmatic (ad hoc) approach
• Authoritativeness general acceptability
• Reversal of position on taxes

6
CAP 1938-1959 (cont.)

• Presidents of AIA called for new approach to
  standards setting
• Emphasis on greater research basis
• Powell Committee recommended dual arrangement
  APB and research division
• Research division ARSs
• APB to base conclusions on ARSs
• AIA Council approved report 1959 APB and
  research division established

7
APB (1959-1973)

• Issuance of reaction to ARS 1 3
• Investment tax credit issue
• APBO 2
• APBO 4
• 1964 edict addendum to APBO 6
• Late 1960s APB dealt with tough issues
• 1971 AICPA appointed Trueblood Wheat
  Committees

8
APB (1959 - 1973)

• Authoritativeness
• APBO 1-5 general acceptability
• APBO 6-27 general acceptability plus
• APBO 28-31 Rule 203
• Final opinion APBO 31