The FASB's standard-setting process includes, in the correct order:
A)Exposure draft, research, discussion memorandum, SFAS.
B)Research, exposure draft, discussion memorandum, SFAS.
C)Research, discussion memorandum, exposure draft, SFAS.
D)Discussion memorandum, research, exposure draft, SFAS.

Question

Quizplus · Accepted Answer

The FASB's standard-setting process starts with researching the issues and identifying potential accounting standards. This is followed by preparing a discussion memorandum, which is an informal document that solicits feedback and comments from stakeholders. Based on the feedback received, the FASB may issue an exposure draft, which is a proposed accounting standard that is subject to public comment. Finally, the FASB will issue a Statement of Financial Accounting Standards (SFAS) if it determines that the proposed standard is necessary and appropriate. Therefore, the correct order is research, discussion memorandum, exposure draft, and SFAS.

The FASB's Standard-Setting Process Includes, in the Correct Order