Question

The first step taken in the establishment of a typical FASB statement is:

A) Identification and prioritization of financial reporting issues.
B) Formation of an implementation committee.
C) Drafting the exposure draft.
D) Publication of the final statement.

Answer 1

The first step taken in the establishment of a typical FASB statement is the identification and prioritization of financial reporting issues.

Step-by-step explanation:

The first step taken in the establishment of a typical FASB statement is the identification and prioritization of financial reporting issues. This step involves analyzing the existing financial reporting landscape, identifying areas where there may be inconsistencies or gaps in reporting standards, and determining which issues are most urgent or in need of attention. Once these issues are identified and prioritized, the FASB can then proceed with the development of a statement to address them.