Joe Choi, a history major, is considering transferring to your school of business to study accounting. Joe is having some doubts because he is uncertain if there is any room for history in accounting. Convince Joe to major in accounting by providing a history of standard setting in the United States. In your response, address the following items:
a. When did financial reporting standard setting begin in the United States?
b. Who had initial authority to set accounting standards?
c. Which organizations were delegated the authority to set standards? Comment on the types of standards issued and concerns with the standard- setting process under each organization.
d. Who currently sets accounting standards in the United States? What is the structure of the organization? What types of standards are issued?