It stated (as vaguely as ever) that "generally accepted accounting principles are those principles which have substantial authoritative support." It also asserted that APB opinions
constituted evidence of substantial authoritative support, but that other principles may also have such support.
Before the end of 1974, it issued three interpretations of APB opinions
and two statements.
This 1969 Supreme Court decision established that relying on the guidance in GAAP and APB Opinions
was no longer a shield against litigation.
Concurrently, the Financial Accounting Standards Board has issued an exposure draft of a proposed Statement of Financial Accounting Standards, Accounting in Interim and Annual Financial Statements for Certain Costs and Activities Related to Property, Plant, and Equipment--an Amendment of APB Opinions
It includes analysis and explanations of the pronouncements of the Accounting Principles Board (APB) and the Financial Accounting Standards Board (FASB) and analyzes Accounting Research Bulletins, APB Opinions
, FASB statements, interpretations, and technical bulletins.
GAAP Hierarchy under SAS 43 Category Type of Pronouncements (a) FASB Statements and Interpretations, APB Opinions
, AICPA Accounting Research Bulletins; and for state and local governments, GASB statements and interpretations.
In deliberating accounting issues, APB issued Exposure Drafts for comment before finalizing its conclusions, known as "APB Opinions
The AICPA also creates an Accounting Research Division that is to conduct research to support the APB Opinions
. Eventually, 15 Accounting Research Studies are published under the aegis of the APB.
Observers hoped that the goodwill issue had finally have been resolved with the issuance of APB Opinions
16 and 17 on business combinations and goodwill amortization.
As part of an effort to reinforce APB authority, a 1964 AICPA council resolution calls for the disclosure of departures from APB opinions
that have not been superseded by actions of the FASB are considered authoritative under the AICPA's Code of
* SOP 94-2 requires NPOs to follow the guidance in accounting research bulletins, APB opinions
and FASB statements and interpretations, unless a pronouncement explicitly exempts them.