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Identify Standard Setting Policies and Procedures and Develop Implications for the Accounting Profession.

In: Business and Management

Submitted By montis1700
Words 1008
Pages 5
The standards setting process is a very complex but necessary process in the accounting world. The Financial Accounting Standards Board accomplishes this mission through a comprehensive and independent process that encourages broad participation, objectively considering all stakeholder views, and by being subjected to oversight by the Financial Accounting Foundation’s Board of Trustees. Through these few necessary requirements they help form a very effective and sound standard setting process. The first part of the standard setting process that plays a crucial role in this process is the Rules of Procedures. The Rules of Procedure of the standards setting process describes the FASB’s operating procedures, and includes the due process activities that are to be open to public participation or observation to provide transparency into the standards-setting process. These rules set forth procedures followed by the FASB in establishing and improving standards of financial accounting and reporting for nongovernmental entities, including procedures related to the issuance of such standards and other communications. They also describe briefly the relationship of the FASB to the Foundation and its two advisory councils, the Financial Accounting Standards Advisory Council and the Private Company Council. The FASB is an independent, private-sector body created to serve an important public interest. Since 1973, it has been the designated organization in the private sector for establishing and improving standards of financial accounting and reporting that govern the preparation of financial reports by nongovernmental entities. The rules of procedure also describe the FASB mission, how the mission is accomplished, and the related principles that guide the Board’s standards-setting activities. It goes even further to explain the operating procedures of the FASB, including the…...

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