The authority to issue accounting pronouncements has evolved overtime.
a. Discuss the rule making bodies involved in issuing accounting pronouncements since the 1930s.
b. SEC Accounting Series Release (ASR No. 4) allowed accounting principles to be set in the private sector. ASR No. 4 also indicated that reports filed with the SEC must be prepared in accordance with accounting principles that have “substantial authoritative support.” Define substantial authoritative support.
c. How are accounting standards enforced?
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