FASB – A New Approach To Accounting Standards
by
Shristy
Those standards are officially recognized as authoritative by the Securities and Exchange Commission The mission of the FASB ASC 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 People have to take a keen interest in identifying few key areas like broad participation, objectively considers all stakeholder views, and is subject to oversight by the Financial Accounting Foundation\’s Board of Trustees in order to accomplish such a goal. For helping better organize the FASB ASC or the Accounting Standards Codification implemented a classification system. S The multiple formats has been released for accounting standards. S Few good information regarding the implementation of the U.S GAAP standards will be required which are said to be the similar to the pre-codification process. The primary function of FASAC is to advise the FASB on technical issues on the Board\’s agenda, possible new agenda items, project priorities, procedural matters that may require the attention of the FASB, and other matters as may be requested by the FASB or its chairman There are about 30 members joining the council currently and which forms the major part of the FASB\’s constituency. According to FASB, broad participation, objectively considers all stakeholder views, and is subject to oversight by the Financial Accounting Foundation\’s Board of Trustees are the key areas of functioning which should be made note of. If the standards are properly set, a proper following of rules follow. It is the nature of the reporting issues and its scope which determines the nature and extent of board\’s specific research. The operating procedures of the FASB ASC, including the responsibilities of the Chairman, the composition of the FASB technical staff, the role of advisory groups including the Emerging Issues Task Force, and the role of public forums in our due process Analyzing comment letters, public round table discussion and other information obtained through other activities are the few functions been taken care by the staff working in the process. After carefully considering the stakeholder\’s input the board again delivers the provision proposed. In the future, the FASB will make sure that they will not issue any new standards in the form of statements, FASB Staff Positions, or Emerging Issues Task Force (EITF) Abstracts. Updating codification, providing information and forming bases for conclusions are the areas of functioning performed by accounting standards.
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