Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 7 - Fraud, Internal Control, and Cash - Broadening Your Perspective - Financial Reporting and Analysis: BYP7-5

Answer

(a) The mission of the FASB is to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports. (b) Request to add a topic is sent by email, in the form of a letter that identifies the problem, with sufficient detail the reason(s) for the request, and sets forth specific proposals for solution. (c) 1. Request letters are received by email. 2. Reviewed by Technical Director. 3. Letter distributed to all the members of the FASB. 4. The request is adequately considered and dealt with by FASB. 5. The FASB Chairman decides whether to add a project, after careful consideration of the reports and consultation of members and others.

Work Step by Step

(a)That mission is accomplished through a comprehensive and independent process that encourages broad participation, objectively considers all stakeholder views, and is subject to oversight by the Financial Accounting Foundation's Board of Trustees. (b)This letter will be reviewed by one of the Technical Directors and distributed to all members of the FASB. The FASB Chairman decides whether to add a project to the technical agenda, subject to oversight by the Foundation's Board of Trustees and after appropriate consultation with FASB Members and others. (c) The Characteristics which makes the FASB's procedure an "Open" decision-making process
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