How are topics added to the FASB technical agenda?
What characteristics make the FASB's procedures an "open" decision-making process?
Please note that I visited the FASB website, and I understand what I need help on is more of summary answer to the above questions.
Please refer to response attached, which is also presented below. I hope this helps and take care.
1. How are topics added to the FASB technical agenda?
First, input and requests for certain topics to be added to the technical agenda come from various constituencies (to include in the final decision making process). After receiving input from the constituency, the Board must make its own decisions regarding its technical agenda, and all technical decisions are made in meetings (generally held at the FASB's offices) that are open to public observation, although observers do not participate in the discussions.
Let's look at each a bit closer.
First, input and requests for certain topics to be added to the technical agenda come from various constituencies (to include in the final decision making process). For example, requests for topics for the technical agenda come from all segments of its diverse constituency, including the SEC. These requests often reflect the emerging trends to be considered for the technical agenda. These topics include various financial accounting and reported topics, and both new topics and suggested review or reconsideration of existing pronouncements. Thus, all emerging trends have the potential to be added to the technical agenda. In addition, the staff receives many technical inquiries, which may provide evidence that a particular topic, or aspect of an existing pronouncement, has become a problem and needs consideration of being added to the technical agenda. Secondly, trends in financial reporting through observation of published reports, liaison with interested organizations and discussions with The Emerging Issues Task Force (EITF) inform TASB of potential topics. Thirdly, new legislation or regulatory decisions about changes in the financial reporting environment inform FASB of potential topics to add to the technical agenda. Fourth, the Board turns to many other organizations and groups for advice and information on various matters, including potential topics to add to the technical agenda. Among the groups with which liaison is maintained are the Accounting Standards Executive Committee (AcSEC) and the Auditing Standards Board of the AICPA, the Public
Company Accounting Oversight Board, the International Accounting Standards Board (IASB), and the appropriate committees of such organizations as the CFA Institute, Financial Executives International (FEI), and Institute of Management Accountants (IMA). Fifth, as part of the agenda process, the Board may make available for public comment agenda proposals that concisely describe the scope of potential projects. Thus, the public comments become part of the "open" decision making process on what to add to the technical agenda. As well, the Financial Accounting Standards Advisory Council (FASAC) regularly reviews the Board's agenda priorities and consults on all major projects added to the technical agenda. The FASB's User Advisory Council and Small Business Advisory Committee also serve as resources to the Board both in formulating the FASB technical agenda and in advising on specific agenda projects.
As mentioned above, after all information is collected from the ...
The solution draws on the FASB website and explains how topics are added to the FASB technical agenda, and the specific characteristics that make the FASB's procedures an "open" decision-making process.