Financial Accounting Foundation Assignment

Running head: ACCOUNTING
Accounting
3-13-2020

ACCOUNTING 1
Q1.
The accounting standards have been historically established by the American Institute of
Certified Public Accountants. The Financial Accounting Foundation is accountable to
provide input and advice related to the accounting standards. The factors that influence
accounting are legal system, complexity of the business entity, level of legislative
interference, political system, ownership nature, speed of business innovation, etc.
(Accounting, 2020).
The AICPA in the initial phase developed an Accounting procedure committee in the year
1939 and replaced it with the Accounting Principles Board in 1959. Then in the year 1973, it
was replaced by the Financial Accounting Standards Board under the guidance of the
Financial Accounting Foundation for providing the input in the accounting standards. Some
other organizations that took involvement in the accounting standards of the US are the
Federal Accounting Standards Advisory Board and the Governmental Accounting Standards
Board. In the year 2008, the Security and Exchange Commission introduced an introductory
roadmap that supports the country to abandon GAAP in the coming future and also to involve
around 100 nations (Accounting, 2020).
The organizations that majorly influenced the GAAP in the US are AICPA, IRS, FASB, and
SEC. This is because GAAP principles are different from other accounting standards applied
in international market, but organizations such as FASB and IASB are operating to introduce
an acceptable accounting standard at international level (Wilkinson, 2013).
Q2.
Value-based management is said to be the management approach as well as philosophy that
allow and assist in the creation of maximum value within organizations, classically the