Though often relying on the FASB,the SEC has authority to establish GAAP for public companies.

Question

Quizplus · Accepted Answer

The statement is true. While the Financial Accounting Standards Board (FASB) is primarily responsible for setting generally accepted accounting principles (GAAP), the Securities and Exchange Commission (SEC) has the authority to establish GAAP for public companies as well. The SEC also has the power to enforce compliance with GAAP and has established its own rules and regulations related to financial reporting by public companies.

Though Often Relying on the FASB,the SEC Has Authority to Establish