1. Chapter 3 The APB Post ARS #1 and #3
Examine the post-rejection of ARS #1 and #3 tenure of APB
Consider second major theory formulation: ASOBAT

2. Standard Setting V The APB-Post ARS #1 and 3
Started off with “Golden Opportunity (G.O.)” to develop theory.
Possible redemption: G.O. #2

3. GO #2:Accounting for Investment Credit
Options?
How did the APB react to golden opportunity #2?
What consequences followed?

4. Questions
Why do you think the APB adopted the deferral approach to the IC?
If you had been a member of the APB, how would you have felt when the SEC overruled Opinion #2 with ASR #96 in January, 1963?

5. Theory III ASOBAT 1966 Profession still theory-less Turn to who?
Comparative advantage?

6. ASOBAT What was it to accomplish?
“…the process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information.” 3 definitional differences?
Approach, Contents, and Core

7. ASOBAT
Flavor

8. ASOBAT 3 Controversy Three criticisms: R. Morrison G. Sorter
R. Sterling

9. ASOBAT Critique #1
R. Morrison, the practitioner, Commentary

10. ASOBAT Critique #2 Concerns: G. Sorter*
*”An Events Approach to Basic Accounting Theory,” Accounting Review 1/1969.

11. ASOBAT Critique #3 Concerns: Sterling*
*”ASOBAT: A Review Article,” Journal of Accounting Research, Spring 1967.

12. APB Failing
By 1970, Major Problems emerged

13. International: Other Approaches to Standard Setting
World-wide Standard Setting Approaches-1. public, 2. private, 3. private as public, and 4. mixed.