Does an Accounting Police Exist?
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Have you ever wondered who created the accounting principles? Who revises and sets the accounting standards? What if you do not follow the rules, do you have to go to jail? Do you think an accounting police force is out there to arrest violators?
Yes, there is. Double-entry accounting has originated in Italy around the 1400’s. So this means that accounting principles have been around for awhile. The business community understood that there should be a consistency and commonality in reporting financial statements. In the U.S., there is a body of experts that are known as FASB (Financial Accounting Standards Board). It was created in 1973, which superseded APB (Accounting Principles Board).