Final answer:
The SEC and FASB are the primary rule-making bodies for public entities in the U.S., tasked with developing GAAP to guide financial reporting. Bureaucratic rulemaking also creates standard operating procedures for government operations, influenced by various stakeholders in the policy-making process.
Step-by-step explanation:
The rule-making body for public entities in the United States is the Securities and Exchange Commission (SEC), accompanied by the Financial Accounting Standards Board (FASB). The SEC is a federal agency that oversees securities transactions, stock exchanges and the financial reports that publicly held companies are required to disclose. The FASB, although a private organization, is recognized by the SEC as the designated accounting standard-setter for public companies. These bodies develop and enforce accounting standards known as Generally Accepted Accounting Principles (GAAP), which provide guidelines for financial reporting and are essential for maintaining transparency, consistency, and comparability of financial statements.
Bureaucratic rulemaking involves creating procedural guidelines, also known as standard operating procedures, which are critical for ensuring that government officials and agencies operate within the confines of the law. These procedures help facilitate government interactions with businesses, individuals, and other non-profit or non-governmental organizations. They also impact how the government involves itself in the economy, balancing the need for regulation against the promotion of free market principles. Key factors in the development of public policy include input from political parties, interest groups, the media, and individuals, who can all influence the policymaking process.
The desire for uniform policies set at national level and the importance of standards for consistency across state and local governments is a reflection of the need for regulations that are coherent and equitable, serving the public interest across the nation.