The Accounting Standards Setting Process in the U.S. Examination of the SEC-FASB Relationship

Dan Palmon, Marietta Peytcheva, Ari Yezegel

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

In the U. S. there is a close relationship between the Securities and Exchange Commission (SEC), a governmental agency legally responsible for setting accounting standards, and the Financial Accounting Standards Board (FASB), a private sector body to whom the SEC has delegated this responsibility. In this paper we examine the influence of the SEC on the FASB as evidenced by all major statements issued by the FASB. Minor statements, amendments, and strictly technical pronouncements were omitted because of their limited exposure to the political process. Our analysis reveals that the SEC applied substantial pressure on the FASB in the standard setting process and has not adopted a position of benign neglect.

Original languageEnglish (US)
Pages (from-to)165-183
Number of pages19
JournalGroup Decision and Negotiation
Volume20
Issue number2
DOIs
StatePublished - Feb 2011

All Science Journal Classification (ASJC) codes

  • Decision Sciences(all)
  • Arts and Humanities (miscellaneous)
  • Social Sciences(all)
  • Strategy and Management
  • Management of Technology and Innovation

Keywords

  • Accounting standards setting process
  • FASB
  • Group decision
  • U.S. Congress

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