The delegation and privatization of financial accounting rulemaking authority in the United States of America

Abstract

This article questions the legitimacy of (1) the US Congress' delegation of accounting rulemaking to the US Securities and Exchange Commission and (2) the US Securities and Exchange Commission's further delegation to the private FASB. The first delegation is found to violate the US Constitution and the second to violate both the US Constitution and the US securities laws. SEC and FASB accounting rulemaking are both illegitimate.