The Objectives of this paper have been to search the lessons which Korea can learn from the direction in the formulation of the generally accepted accounting principles in the United States. To aid in an understanding of this direction, I have discussed the evolutonairy and voluntary nature of their development and have described some of the major forces such as SEC, AICPA, AAA, etc. that have contributed to their development. Generally accepted accounting principles are the basic frame of reference in financial accounting. They have gained the respect and confidence of financial statement users. This development, however, is not comp1ete. It likely never will be. Many difficult and controversial problems remain. This paper suggests the following five point that Korea should consider in developing good financial accounting principles based on the direction in the formulation of the generally accepted accounting principles in the United States. (1) Principles are broad, general statements which serve as guides for solving specific problems they are not detailed instructions. Currently a comprehensive consistent, and generally accepted body of accounting principles does not exist in the United States or Korea. A body of principles should consist of a few fundamental concepts Principles are not procedures. They should be differentiated each other. (2) It is impossible to, develop comprehensive and consistent set of principles which can be applied both financial accounting and management accounting. Accounting figures should always be discussed in terms of the particular problem that they are intended to help solve, rather, than in any abstract sense. Therefore, generally accepted accounting principles should not be regarded as business accounting principles. (3) The another semantic problem centers around the term $quot;accepted.$quot; We have to search $quot;generally acceptable financial accounting principles,$quot; not generally accepted accounting principles. To achieve this goal, $quot;inventory of generally accepted accounting principles for business enterprises$quot; in Korea like ARS No. 7 of AICPA should be searched not to discover new or bitter accounting principle but ① to present the basic concepts to which accounting principles are oriented, and ② to enumerate the principles or practices currently adhered to or employed by the accountant in fulfilling his financial reporting obligation. (4) Not like the United States financial accounting principle (standard) committee or board should should include at least one member from government. Since government must assure that the interested people have adequate information on which to base their decision. (5) Theory and practice can complement one another and provide a check-and-balance procedure in the development of accounting principles. The continual interaction between the two should emerge set of concepts which comprise what we want as generally acceptable financial accounting principles. Therefore, there should be a good research organization which can coordinate the interaction between KICPA and accounting theoretican such as college professor. Especially theoretican should organize a accounting oriented research group within or outside of Korean association of Business Administration.