Financial accounting standards in the U.S. are set by the Financial Accounting Standards Board (FASB), an independent body. When the Securities and Exchange Commission (SEC) was formed in the 1930s, Congress had given it the responsibility for setting standards for U.S. public companies but the SEC chose not to do this and left it to the external bodies like the AICPA and the FASB to set these standards. Discuss two advantages of SEC setting financial reporting standards in the U.S. and two disadvantages of this approach.

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Advantages of SEC setting Financial standards in US are More Regualted environment can be brought ... View the full answer