Question

Which of the following represents the correct order in which the FASB develops Statements of Financial Accounting Standards?

Multiple Choice

• public heaings, discussion memorandum, exposure draft, vote

• exposure draft, discussion memorandum, public hearings, vote

• discussion memorandum, public hearings, exposure draft, vote

• discussion memorandum, exposure draft, public hearings, vote

Answer 1

Answer:(c) i.e. discussion memorandum, public hearings, exposure draft, vote.

1. The Board identifies financial reporting issues based on requests/recommendations from stakeholders or through other means.
2. The FASB decides whether to add a project to the technical agenda based on a staff-prepared analysis of the issues.
3. The Board deliberates at one or more public meetings the various reporting issues identified and analyzed by the staff.
4. The Board issues an Exposure Draft to solicit broad stakeholder input. (In some projects, the Board may issue a Discussion Paper to obtain input in the early stages of a project.)
5. The Board holds a public roundtable meeting on the Exposure Draft, if necessary.
6. The staff analyzes comment letters, public roundtable discussion, and all other information obtained through due process activities. The Board redeliberates the proposed provisions, carefully considering the stakeholder input received, at one or more public meetings.

Identify topic, conduct pre agenda research, make agenda decision, delibetai public meeting, host public hearings, exposure draft ,vote, implementation...