Accounting history, the accounting historian, and the FASB

              William G. Shenkir FINANCIAL ACCOUNTING STANDARDS BOARD
ACCOUNTING HISTORY, THE ACCOUNTING HISTORIAN, AND THE FASB
The Financial Accounting Standards Board—a "bold new effort" in self regulation by the private sector—became the official rule-making body for financial accounting and reporting on July 1, 1973. The Wheat Report, Establishing Financial Accounting Standards, which led to the formation of the FASB was based, in part, upon an historical study of the rule-making efforts of the Accounting Princi-ples Board. At this early juncture in the FASB's tenure, it seems appropriate for those interested in accounting history to: (1) con-sider the possibilities for their participation in the on-going work of the FASB; and (2) take note of the sources that will be available for study of the FASB in the future.
It is well to remember that each historical era is capable of for-getting. As George Santayana stated, "those who cannot remember the past are condemned to repeat it." The "due process" built into the FASB's Rules of Procedure provides an opportunity for the ac-counting historian to participate in the work of the FASB by drawing attention to the historical dimensions of a contemporary problem. By bringing his analytics to bear upon problems currently under consideration, the accounting historian may provide a rather unique input to the Board.
As stated in the FASB's Rules of Procedure, once a subject is added to the technical agenda, the "due process" cycle that may be followed includes: participation by a task force in the prepara-tion of a discussion memorandum, a public hearing normally held after at least 60 days notice, and issuance of an exposure draft of the proposed Statement of Financial Accounting Standards usually for at least a 60-day comment period. This cycle may involve longer comment periods when considered necessary by the Board and also
Prior to joining the FASB staff in March 1973, William G. Shenkir was Professor of Accounting at the University of Virginia. (The Financial Accounting Standards Board, as a matter of policy, disclaims responsibility for any publication by any of its members or staff. Accordingly, any views so expressed are those of the author and do not necessarily reflect the views of the Standards Board.)