The accounting standards are set by specific Organizations depends on the country location and regulations. You are asked to answer the following questions:

• What are the developing US Financial Accounting Standards Organizations with each organization responsibilities? Please write one paragraph.

What are the processes of setting a new accounting standard in the USA? Please write one paragraph.

Answer preview

The Financial Accounting Standards Board (FSB) is a non-profit institution that sets standards for Generally Accepted Accounting Principles (GAAP) (Ampofo and Sellani, 2015). The main objective of the body is to improve these principles while maintaining the interests of the public. The critical principle is to issue standards when the anticipated change benefits meet the expected costs. Through Cost-Benefit Analysis, FASB has a guideline for gathering data about the benefits and costs of standards. The organization’s responsibilities include the Board, which reviews recommendations from stakeholders and identifies issues with financial reports. Also, it issues an update on accounting standards and amendments. The FASB should add projects on the technical agendas. The responsibilities of the staff members include analyzing comment letters and conducting roundtable discussions. The staff can explore the financial reporting issues, which will enable the Board to initiate more public meetings. Also, they have the responsibility to consider the inputs presented by the stakeholders and deliberate on proposed provisions in the public meetings.

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