The process of establishing financial accounting standards is
A) a democratic process in that a majority of practicing accountants must agree with a standard before it becomes implemented.
B) a legislative process based on rules promulgated by government agencies.
C) based solely on economic analysis of the effects each standard will have if it is implemented.
D) a social process which incorporates political actions of various interested user groups as well as professional research and logic.

Question

Quizplus · Accepted Answer

The process of establishing financial accounting standards is a social process which incorporates political actions of various interested user groups as well as professional research and logic. It involves the Financial Accounting Standards Board (FASB) and other interested parties such as investors, regulators, and accounting professionals who provide input and feedback on proposed accounting standards. The FASB then considers this input, along with its own research and analysis, to create and enforce accounting standards for public companies in the United States.

The Process of Establishing Financial Accounting Standards Is