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Financial Accounting

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GAAP Influencers

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The independent nature of the Financial Accounting Standards Board (FASB) is designed to produce Generally Accepted Accounting Principles (GAAP) that are as free from bias as possible. However, whenever humans are involved there is always some degree of political influence. Unfortunately, this is the case with GAAP as well. The key is to keep it to a minimum.

GAAP rules are influenced by a number of groups. Which of the following are strong influencers of GAAP rules? Select ALL that apply.

A

Accounting firms (e.g., Deloitte, PwC, etc.)

B

Academics (e.g., university professors)

C

Tax return preparers (e.g., H&R Block)

D

U.S. Justice Department

E

Government agencies (e.g., SEC, IRS, etc.)

F

Members of the financial services community (e.g., investors, bankers, financial managers, etc.)

G

American Institute of Certified Public Accountants (AICPA)

H

Institute of Management Accountants (IMA)