What organization resulted from the recommendations of the Wheat Committee in 1973?

The Financial Accounting Standards Board (FASB) was established as a result of the recommendations made by the Wheat Committee in 1973. The committee, officially known as the study group on the establishment of accounting principles, was commissioned to address concerns regarding the adequacy of financial reporting and the need for a more structured approach to developing accounting standards in the United States.

Prior to the formation of FASB, the task of setting accounting standards was primarily managed by the Accounting Principles Board and the American Institute of CPAs (AICPA). However, the Wheat Committee identified issues with this approach, such as the lack of independence and the need for a more definitive, authoritative body that could create and enforce accounting standards.

FASB was established to fulfill this role, with the intention of improving financial reporting by providing consistent and high-quality accounting standards. This has had a significant impact on financial reporting practices, ensuring greater transparency and comparability for users of financial statements. The establishment of FASB marked a pivotal shift in the accounting landscape, leading to a more organized and systematic approach to accounting standards in the United States.