1. Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC Lack of full-time professional staff

2. Weaknesses of CAP (cont.) Pragmatic approach Lack of conceptual framework No comprehensive statement of accounting principles Inconsistency (e.g., ARB 44 & ARB 44 Rev.) No research division

3. Weaknesses of APB Part-time Board members Lack of independence Not explicitly recognized by SEC Inadequate full-time professional staff

4. Weaknesses of APB (cont.) Investment tax fiasco Pragmatic approach Lack of conceptual framework No comprehensive statement of accounting principles

5. FASB 1973-???? Trueblood & Wheat Commissions 7 full-time board members Operational July 1973 Independent Full-time staff Explicitly recognized by SEC (ASR 150) Rule 203 acknowledgement Conceptual framework

6. Pronouncements of FASB Rule 203 Category A: FASB Statements FASB Interpretations

7. Other Pronouncements Issued by or Associated with FASB FASB Statements of Financial Accounting Concepts FASB Technical Bulletins EITF Abstracts FASB Staff Positions FASB Staff Q&As

8. FASB Codification - 2009 In 2009 the FASB codified all U.S. GAAP for non-governmental entities into one location The only authoritative U.S. GAAP is the FASB Codification