The creation of the…
Committee on Accounting Procedures
a) Role: formative era
b) history:

c) structure:

In response to the SEC’s Accounting Series Release No. 4, the American Institute of Accountants (AIA) reorganized its Committee on Accounting Procedure (CAP) in 1939 and increased it from 8 to 22 members, all accounting practitioners except for three academicians.

To emphasize its importance and the AIA’s intent to demonstrate leadership, Clem W. Collins, AIA president, was designated CAP chairman. George O. May, who had led the prior committee as well as the AIA Special Committee on Cooperation with Stock Exchanges, served as CAP vice-chairman.

d) strengths; First, accounting practices, especially in terms of uniformity, improved significantly. Second, the private sector was firmly established as the source for accounting policy making in the United States.
Accounting Research Bulletins (ARB) The CAP would issue 51 ARBs during its existence, several of which survive in today’s FASB’s Codification, and four Accounting Terminology Bulletins.

e) weaknesses:
The CAP decided early on that formulating a statement of broad principles would take too long and instead approached issues on a case-by-case basis. Without a framework and often without adequate research, the CAP relied on the members’ collective experience for agreement on member-suggested solutions. In 1949, the CAP reconsidered developing a framework but instead codified and updated its first 42 ARBs. The CAP was criticized for its piecemeal, “firefighting” approach to setting standards and its failure to reduce the number of alternative accounting procedures.
f) reason for its creation and /or demise.
The CAP was a great response to Accounting Series Release No. 4, but after 20 years few believed that its process could “get it right.”