Question

In establishing financial accounting standards, two basic premises of the FASB are (1) The FASB should be responsive to the needs and viewpoints of the entire economic community, not just the accounting profession. (2) It should operate in full view of the public through a "due process" system that gives interested persons ample opportunity to make their views known. To ensure achievement of these goals, what steps does the FASB follow in the development of a typical FASB standard

Answer 1

Answer:To ensure achievement of these goals, as stated in establishing financial accounting standards, the following steps as outlined in the explanatory column should be followed by FASB

Explanation:

a. Topics on financial reporting issues  to be considered are identified and placed on the Board's agenda.

b. After  Pre-agenda Research and analysis are carried out on the considered Financial issues, Deliberations on views and reporting issues are carried out by the Board

c. A public hearing on the proposed standard  should be conducted

d. The research and public response will now be evaluated with the Board issuing  an exposure draft.

e. The Board re- evaluates and redeliberates  the responses from the public and  changes the exposure draft, if necessary, then

f)The final standard will be issued based on the Accounting Standards describing amendments to the Accounting Standards Codification.