When developing new standards, the standard setters must first determine ________.
A) which elements of the financial statements are affected by the proposed standard
B) if the proposed standard possesses the qualitative characteristics that make accounting information useful
C) if the proposed standard meets the objective of financial reporting
D) which recognition and measurement concepts are used to support the proposed standard

Question

Quizplus · Accepted Answer

The primary step in developing new standards is to ensure that the proposed standard aligns with the overall objective of financial reporting, which is to provide useful financial information to users.

When Developing New Standards, the Standard Setters Must First Determine