Answer
FASB “due process” system involves the following:
1. Identifying topics and placing them on the Board’s agenda.
2. Research and analysis is conducted and preliminary views of the pros and cons issued.
3. A public hearing is often held.
4. Board evaluates research and public responses and issues exposure draft.
5. Board evaluates responses and changes exposure draft, if necessary. Final statement is then issued.
Work Step by Step
The Financial Accounting Standards Board (FASB) has established the following procedures for developing accounting standards. These procedures are used for major projects. Not all of the steps may be necessary for projects focused on narrower application and implementation issues. Many other steps are followed during the course of the project that are not specifically required by the Board’s Rules of Procedure
