Question

Which of the following documents is typically issued as part of the due-process activities of the Financial Accounting Standards Board (FASB) for amending the FASB Accounting Standards Codification?

A. A proposed statement of position.
B. A proposed accounting standards update.
C. A proposed accounting research bulletin.
D. A proposed staff accounting bulletin.

Answer 1

The correct anwer is B. A proposed accounting standards update.

Step-by-step explanation:

Each time it is intended to make a modification to the accounting standards, it is necessary for the FASB to publish a proposal to update accounting standards (ASU), with the main objective of making known the proposed changes. In certain cases, after a process of presenting, receiving and arranging comments from the users of the information, the application of the standard is given free access.

According to current regulations, each ASU explains:

• How the FASB has changed the US GAAP, including each specific amendment to the FASB Coding.
• Why the FASB decided to change the US GAAP and the background information related to the change.
• When the changes will be effective and the transition method.

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