The first step in issuing an accounting standard is the:
A) identification by interested parties of a relevant issue.
B) issue of an exposure draft inviting comment from interested parties.
C) consultation with stakeholders.
D) comprehensive research of the relevant issue.

Question

Quizplus · Accepted Answer

The first step in issuing an accounting standard is the identification by interested parties of a relevant issue. This may include industry experts, regulators, and other stakeholders who identify a need for clarity or guidance in accounting treatment for a specific issue. Once the issue is identified, the standard-setting bodies can move on to the next steps, such as comprehensive research and consultation with stakeholders. The issue of an exposure draft inviting comment from interested parties typically comes after the initial identification of the relevant issue.

The First Step in Issuing an Accounting Standard Is The