The first step in issuing an accounting standard is
A)the issue of an exposure draft inviting comment from interested parties.
B)the convening of an advisory panel by the AASB
C)the identification by interested parties of a relevant issue.
D)the preparation of a key decision questionnaire identifying the principle issues raised.

Question

Quizplus · Accepted Answer

The identification by interested parties of a relevant issue is the first step in issuing an accounting standard. This could be done through various means such as feedback from stakeholders, regulatory bodies, or changes in business practices that require new accounting treatment. Once the issue has been identified, the standard-setting body can decide whether to issue an exposure draft and seek feedback from interested parties.

The First Step in Issuing an Accounting Standard Is