The Marketing of Accounting Standards The article “The Marketing of Accounting Standards” by Charles T. Horngren speaks of the decentralization of the Accounting Principles Board. He describes the institutional structure of the APB, speaks of the decentralization management, and the problems facing FASB. The institutional structure of the APB is decentralized, as previously mentioned, which leads to an “informal” organizational relationship. Horngren believes the APB folded because of institutional forces rather than internal disintegration (Horngran 61). He states that in politics Congress has the ultimate power, but delegates some of it to the SEC. In turn, the SEC delegates much of this power to the APB. He speaks of the SEC as a “top management” where they adopt decentralization because lower management, the APB, is believed to have more information and ability to make decisions. With this statement though, Horngren received criticism from an SEC member stating they have a “partnership,” (Horngren 62). Horngren believes that, “the need to study how the exercise of power affects the acceptability of accounting standards,” (Horngren 63). Working as a decentralized management has proven to be difficult as well. The issue with marketable securities is one example. Three issues have occurred: recognition of portfolio gains and losses, do the portfolio gains and losses belong in the income statement, and if market values are disclosed in the balance sheet than there’s no difference relating gains and losses on an income statement as realized, on some spreading basis, or on flow through basis. There was much debate between insurances and the APB. Horngren speaks of the implementation of the FASB. He recognizes the political role of a new board to deal with pressures (Horngren 66) and a consideration to certain models. He believes more research in