Which organization is primarily responsible for developing accounting standards in the U.S.?

The Financial Accounting Standards Board (FASB) is primarily responsible for developing accounting standards in the United States. Established in 1973, FASB plays a critical role in the creation and amendment of generally accepted accounting principles (GAAP) that govern the preparation of financial statements. The organization engages in research, deliberation, and the issuance of standards aimed at enhancing the clarity and consistency of accounting practices across various industries.

FASB's standards are recognized and enforced by various entities, including the SEC, which oversees the securities industry and requires publicly traded companies to adhere to these standards for transparency and investor protection. While the SEC has regulatory authority and an interest in financial reporting, it does not develop the accounting standards itself.

The AICPA is involved in the development of auditing standards and provides resources and education to accounting professionals, but it does not primarily set accounting standards. Similarly, the Committee on Accounting Procedure was a predecessor to the FASB that has since been dissolved and is no longer involved in the standard-setting process.

Therefore, the FASB’s role as the authoritative body for establishing accounting standards makes it the correct answer in this context.