The Accounting Principles Board (APB) was the authoritative body of the American Institute of Certified Public Accountants (AICPA) from 1959 until 1973. It was replaced in 1973 by the Financial Accounting Standards Board (FASB).
The purpose of the APB was to issue guidelines and rules on accounting principles. Some of the opinions released by the APB still stand as part of the Generally Accepted Accounting Principles (GAAP), but most have been either amended or entirely superseded by FASB statements.
The APB served an important role in its time, laying the foundation for GAAP, the set of accounting standards and procedures that are intended to ensure consistency, transparency, and integrity in U.S. corporate financial statements.
Virtually all public corporations that operate in the U.S. follow the GAAP standards, which make it easier for investors and auditors to review financial statements and compare one company’s results to those of others.
Those standards began to be developed …