How Should the FASB Be Judged?

Key Points

• Evaluate the performance of the US Financial Accounting Standards Board in relation to accounting standards.
• Conduct a review of existing literature on FASB performance.
• Analyze implications of legislated accounting principles.
• Critique arguments for private sector standard setting.
• FASB has notable limitations in its role as a standard setter.
• Legislated principles impact the effectiveness of the FASB.
• Arguments favoring private sector involvement in setting standards are presented.