It is not often that the federal government has allowed the private sector to govern itself, but

Question:

It is not often that the federal government has allowed the private sector to govern itself, but that is exactly what has happened with the field of accounting. The SEC has delegated the responsibility of rule making to the FASB, a group of five individuals who are hired full time to discuss issues, research areas of interest, and determine what is and will be. What are the advantages of allowing the private sector to determine accounting standards? Identify any advantages that the SEC might gain if it established the rules that govern the practice of accounting.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...