The ideas discussed in “Let’s Reassess Accounting Standards” ( JofA, May00, page 82) are, I believe, those whose time has come. It is time for the AICPA to reassess its unwavering commitment to the Financial Accounting Standards Board.
In my opinion, in addition to the points presented in the article:
- FASB has never really considered the needs of the owners of the overwhelming majority of businesses in the United States—privately held ones.
- FASB appears to listen only to the viewpoints of financial analysts, sometimes to the point of ignoring common sense.
- FASB appears arrogant in overlooking the international standard setters.
Perhaps it is time to consider a major change in the way accounting standards are set:
- Core standards—those that would apply to all businesses—would once again be set by the AICPA, with the input of the SEC and the international group.
- Standards that would apply only to publicly held entities would be set by the SEC, with input from the AICPA and the international group.
I realize there would be many obstacles to overcome if the suggested changes were implemented. However, I believe we need to do something about our current standard-setting system.
Sherman Rosenfield, CPA