What type of membership does the FASB have compared to the APB?

The Financial Accounting Standards Board (FASB) has a bigger, appointed membership compared to the Accounting Principles Board (APB). The FASB is structured to have members who are appointed based on their expertise and contributions to accounting standards, ensuring a comprehensive and authoritative approach to the development of accounting principles. This appointed membership allows for a diverse and knowledgeable group that is able to oversee and enhance the financial reporting landscape effectively.

The APB, on the other hand, was primarily composed of volunteers who were elected by members of the American Institute of Accountants, which did not provide the same level of formal authority and continuity as the FASB’s appointed structure. By having a more formalized approach to membership, the FASB can more effectively address the complexities of modern accounting issues. This distinction between the structures reflects the evolution of accounting standards-making bodies, with the FASB established to provide more consistency in accounting rules through a dedicated and appointed panel of members, while the APB worked with a less structured, volunteer-based approach.