If an FASB standard creates a new principle, expresses preference for, or rejects a specific accounting principle, the change is considered clearly acceptable.

Question

Quizplus · Accepted Answer

If a new FASB standard creates a new principle, it is clearly acceptable as it is considered a change in the accounting rules that companies must follow. Similarly, if a standard expresses preference for or rejects a specific accounting principle, it also creates clarity in the accounting rules and is considered clearly acceptable.

If an FASB Standard Creates a New Principle, Expresses Preference