Answer
a.
The Financial Accounting Foundation (FAF) remains the FASB’s principal sponsor.
The FASB pursues a due process that comprises five steps. Step one focuses on distinguishing topics that are incorporated into the agenda of the board. Step two entails using initial sentiments and research to evaluate the suggested standard's potential advantages and disadvantages. Step three entails the collection of the public's opinions. Step four deals with preparing an exposure draft that considers findings from the research and the public's input. In the final step, the board publishes an Accounting Standards Update after examining various responses.
b.
i. Accounting Standards Update: These updates are intended to make definitive adaptations to the Accounting Standards Codification.
ii. Financial Accounting Concepts: These concepts form a framework that steers the formulation of standards used in financial accounting.
Work Step by Step
a
FAF superintends all activities at FASB, including FASB's membership.
The due process represented above is in 'Illustration 1-3' in the textbook.
b
The Accounting Standards Codification contains all the accounting standards that are respected and recognized.
The financial concepts foster uniformity in how new financial accounting challenges are fixed.
