The following are part of the "due process" system used by the FASB in the evolution of a typical FASB Accounting Standards Update:
1. Exposure Draft
2. FASB Accounting Standards Update"
3. Preliminary ViewsThe chronological order in which these items are released is as follows:"
A) 1, 2, 3.
B) 1, 3, 2.
C) 2, 3, 1.
D) 3, 1, 2.

Question

Quizplus · Accepted Answer

The correct chronological order for the evolution of a typical FASB Accounting Standards Update is: Preliminary Views, Exposure Draft, and then the FASB Accounting Standards Update. This process allows for initial views to be formed, public comment and revision, and finally the issuance of a formal update.

The Following Are Part of the "Due Process" System Used