Question

The Financial Accounting Standards Board (FASB) is a private organization established to improve accounting standards and financial reporting. The FASB conducts extensive research before issuing a “Statement of Financial Accounting Standards,” which represents an authoritative expression of generally accepted accounting principles.

Go to the FASB website to answer the following questions.

a. What are the 10 steps of the standard-setting process?

b. What are the advisory groups that provide service to the FASB?

c. What characteristics make the FASB’s procedures an “open” decision-making process?

Answer 1

Financial Accounting Standards Board (FASB) is the independent, private sector, not-for-profit

organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles"Find). The mission of FABS is to accomplish the following Find):

The FASB and the GASB are charged with setting the highest-quality standards through a process that is robust, comprehensive and inclusive

The FAF management is responsible for providing strategic counsel and services thatsupport the work of the standard-suing Buurds. o The FAF Trustees are responsible for providing oversight and promoting ani independentand effective standard-setting process.