Final answer:
Before FASB, the AICPA had the Committee on Accounting Procedure and the Accounting Principles Board, which established GAAP through bulletins and opinions until 1973. The establishment of the FASB in 1973 marked a significant shift to a more independent and structured approach in setting accounting standards.
Step-by-step explanation:
Before the establishment of the Financial Accounting Standards Board (FASB), the two committees of the American Institute of Certified Public Accountants (AICPA) that were responsible for establishing accounting principles were the Committee on Accounting Procedure (CAP) and the Accounting Principles Board (APB). The CAP was in charge from 1939 to 1959, and it issued 51.
Accounting Research Bulletins that dealt with various accounting problems of that time. Subsequently, the APB took over from 1959 to 1973 and issued 31 APB Opinions, which served as the source of Generally Accepted Accounting Principles (GAAP) during its existence. The establishment of the FASB in 1973 marked a significant shift to a more independent and structured approach in setting accounting standards.