The development of accounting standards
Response to the following problem:
In 1934, Congress created the Securities and Exchange Commission (SEC) and gave the commission both the power and responsibility for setting accounting and reporting standards in the United States.
Required:
1. Explain the relationship between the SEC and the various private sector standard-setting bodies that have, over time, been delegated the responsibility for setting accounting standards.
2. Can you think of any reasons why the SEC has delegated this responsibility rather than set standards directly?