Question

How does the FASB (the Board) consider the input of various interest groups before issuing an Accounting Standards Update? (Select all that apply.) Check All That Apply

A.The Board deliberates the various issues identified and analyzed by its staff at public meetings
B.The FASB staff analyzes comment letters, public roundtable discussion, and any other information
C.Politicians are encouraged to lobby for the standards they prefer

Answer 1

The FASB engages with various interest groups by holding public meetings to discuss and deliberate on input from these groups, as well as analyzing comment letters and public roundtable discussions.

Step-by-step explanation:

The Financial Accounting Standards Board (FASB) involves various interest groups in the standard-setting process through public meetings and analysis of input before issuing an Accounting Standards Update. While the FASB staff plays a critical role in analyzing comment letters, public roundtable discussions, and other information, it is the Board that deliberates on the issues presented. Contrary to the process regarding politicians, the focus in the FASB is not on lobbying but instead on considering the wide array of stakeholder opinions to reach a consensus on accounting standards.

First, the Board deliberates the various issues identified and analyzed by its staff at public meetings, where interested parties can present their opinions and provide feedback. Second, the FASB staff thoroughly analyzes comment letters, public roundtable discussions, and any other relevant information provided by interest groups, as well as other stakeholders, to ensure a comprehensive understanding of different perspectives.