Briefly explain how the financial statements preparers, users, and other interested parties are involved in the standard-setting process for U.S. GAAP.
Briefly
explain how the financial statements preparers, users, and other interested parties are involved in the standard-setting process for U.S. GAAP.
(Select all that apply.)
A.
Accounting standard setters follow a process to set accounting standards which involves considering the input of financial statement preparers, users and other interested parties at several stages. Standard setters consider input from these parties to identify financial reporting issues to pursue.
B.
When deliberating on issuing a final standard, the standard setters consider the input obtained from outside parties at these various stages in the standard setting process.
C.
Once an issue is added to the agenda, standard setters usually have public meetings where they seek comment from these interested parties.
D.
The Financial Accounting Foundation (FAF) identifies a financial reporting issue based on recommendations from analysts, government agencies, or other market participants. The FAF Chairperson then decides whether to add the issue to the technical agenda.
E.
Once a decision is reached to issue a new standard, an Accounting Standards Update (ASU) is issued for consideration. The ASU requires a majority vote of interested parties, including financial statement preparers, financial statement users andauditors, and others for the standard to be enacted.
F.
After an exposure draft is issued, standard setters sometimes hold roundtables discussions, or public forums, which include these various parties.
G.
When an exposure draft is issued, interested parties are invited to prepare comment letters.
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