Timeline of Accounting Regulations

  • Securities Exchange Act of 1934

    Established the SEC, which is the organization that enforces federal laws for financial disclosures
  • Formation of the Committee on Accounting Procedure (CAP)

    Now known as the AICPA, this organization standardized accounting practices
  • Creating of the Financial Accounting Standards Board (FASB)

    FASB instated as the main standard-setting entity, which introduced the Generally Accepted Accounting Procedures (GAAP)
  • Sarbanes-Oxley Act

    Following large corporate scandals, SOX increased corporate accountability, established the Public Company Accounting Oversight Board, and strengthened requirements for internal controls
  • FASB and IFRS Convergence Efforts

    Significant pushes for FASB to align with International Financial Reporting Standards
  • Introduction of ASC 606

    Major shift in revenue recognition rules, which requires companies to recognize revenue based on performance obligations
  • Climate and ESG Disclosure Proposals

    A move towards greater ESG reporting requirements for publicly traded companies