The major distinction between the Financial Accounting Standards Board (FASB) and its predecessor, the Accounting Principles Board (APB), is

Question

Quizplus · Accepted Answer

The major distinction between FASB and APB is that all members of the FASB are fully remunerated, serve full time, and are independent of any companies or institutions. APB members were part-time volunteers who were often associated with companies that they were responsible for regulating. FASB has also improved the due process for issuing new accounting standards, including issuing exposure drafts of proposed standards for public comment. While FASB members do possess extensive experience in financial reporting, this is not the major distinction between FASB and APB. Similarly, while a majority of the members of the FASB are CPAs, this is not the major distinction.

The Major Distinction Between the Financial Accounting Standards Board (FASB)