What was the primary purpose of the Wheat Committee when it was established in 1971?

The primary purpose of the Wheat Committee, established in 1971, was to examine the organization and operations of the Accounting Principles Board (APB) with the goal of identifying potential improvements. The committee was concerned with the effectiveness of the APB in setting accounting standards and sought to address various issues related to the standard-setting process in the U.S.

By analyzing the structure and functioning of the APB, the Wheat Committee aimed to enhance the standard-setting process, which ultimately led to significant changes in the way accounting standards were developed. This resulted in the creation of the Financial Accounting Standards Board (FASB), which was intended to be a more effective and independent body for issuing accounting standards. Thus, the focus on examining the APB directly relates to the committee's mission of fostering better financial reporting through structural improvements.