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Why are there so many entities governing the field of accounting? Do they add value or confuse the issues ?


There are several governing bodies in the field of accounting that are worth mentioning, which include FASB (Financial Accounting Standards Board), GASB (Govt Accounting Standards Board), and the SEC (Securities and Exchange Commission). These governing bodies are responsible for laying out the framework for GAAP. Each of these organizations are responsible for designing or influencing accounting standards in general area of accounting in the United States, such as government institutions in the case of GASB.



I believe it is beneficial to have multiple governing entities in the field of accounting. The private sector is much more well equipped to set accounting standards than a centralized bureaucratic system. The current standard-setting systems allows the private sector, as in FASB and GASB, to efficiently set accounting standards with the oversight of the federal government’s SEC. This system ensures that the interests of both the public and private sectors are being represented. In brief, maintaining multiple governing bodies adds value to the field of accounting because it creates in environment that can rapidly adjust to change and set new standards accordingly. 

Check out the http://www.aicpa.org

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