activities of an organization. The purpose of financial accounting, thus, is to provide the financial information necessary for an organization to do its job and for an organization to be able to accurately report its performance to investors, creditors, and governmental agencies. Public confidence in financial accounting reports and statements demands an adherence to recognized standards.
A significant development in the long-term program to establish financial accounting standards was the establishment of the FASB in 1973 (Miller & Redding, 1986). The board is comprised of seven members, four of whom must be certified public accountants drawn from practice. The FASB is assisted by a 40-member advisory council. The primary function of the advisory council is to recommend agenda priorities for board activities, and to review the plans, activities, and statements of financial accounting standards proposed for issue by the board.
In the development of financial accounting st
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