In the United States, accounting principles are developed through a cooperative effort between the public sector and private sector. The SEC is a legal rule-making body and represents the public sector. The FASB represents the private sector. The FASB is responsible for developing financial accounting and reporting standards and principles. The authoritative financial accounting pronouncements of the FASB are know as Statements of Financial Accounting Standards. Why is it so important to have a board that oversees the industry?