The Trueblood Committee was formed by the American Institute of Certified Public Accountants (AICPA) in 1972, and developed the Objective of Financial Statements. The committee's goal was to create financial statements that helped external users make decisions about the economics of companies. In 1978, the Financial Accounting Standards Board (FASB), whose purpose is to develop generally accepted accounting principles, adopted the key objectives established by the Trueblood Committee.
The Trueblood Committee was named for its chairman Robert M. Trueblood. His previous experience on the executive committees of both the American Institute of Certified Public Accountants (AICPA) and the Accounting Principles Board (APB) earned him the position of chairman.
The AICPA began hunting for new objectives of financial statements because prior to the development of the Trueblood Committee many accountants were confused and dissatisfied with the current objectives. Identifying the objectives to financial statements was the purpose behind the creation of the Trueblood Committee. The committee's mission was to create the objectives in a way that would be more easily understandable by accountants and also more relatable to their work.
The two key concepts to take away from the findings of the Trueblood Committee are: