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

Question

Quizplus · Accepted Answer

The FASB's standard-setting process begins with research, where they evaluate the need for new or updated guidance. Then, a discussion paper is issued to share their preliminary thoughts on the issue with stakeholders. This is followed by an exposure draft, which proposes specific changes to the accounting standards. Finally, the FASB issues an Accounting Standards Update to inform stakeholders of the final changes to the standards.

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