Which of the following is the main accounting standard setter in the US?

The major standard-setting body for the United States is the Financial Accounting Standards Board (FASB). Since its creation in 1973, FASB has been the leading developer and enforcer of accounting standards known as Generally Accepted Accounting Principles (GAAP). These standards are applied by public and private for-profit and nonprofit organizations throughout the United States for financial reporting purposes.

FASB is an independent, non-profit organization that works under the oversight of the Financial Accounting Foundation (FAF). Its main objective is to enhance transparency, accuracy, and reliability in financial reporting, which enables investors, creditors, and other stakeholders to make informed economic decisions.

Setting accounting standards is a very long process that involves elaborate research, public input, and consultation with industry professionals. FASB regularly revises and adds to these standards as business environments, economic conditions, and financial practices continue to evolve. Probably its most ambitious undertaking so far is the issuance of the Accounting Standards Codification (ASC), a comprehensive system that organizes US GAAP into a coherent framework.

The Securities and Exchange Commission (SEC) is also instrumental in the American financial reporting environment through recognizing FASB as the authoritative standard-setting body. It is a law for all publicly traded companies to apply the standards of FASB in their preparation of financial statements that are filed with the SEC.

But apart from its domestic influence, FASB works with international counterparts, such as the International Accounting Standards Board (IASB), to bring a degree of consistency in financial reporting across borders. The collaboration has been instrumental in aligning US GAAP with International Financial Reporting Standards (IFRS), thereby improving comparability across borders for multinational corporations.

In the end, FASB remains responsible for setting the accounting standards in the US to ensure that financial reporting is presented in a transparent, consistent, and comparable manner. Its work supports economic stability and transparency in the financial markets. For businesses like One IBC USA, adhering to these standards ensures compliance and credibility in their financial reporting processes.