Briefly explain how the financial statementspreparers, users, and other interested parties are involved in thestandard-setting process for U.S. GAAP.

(Select all thatapply.)

A.

Once a decision is reached to issue a newstandard, an Accounting Standards Update(ASU) is issued for consideration. The ASU requires a majority vote of interestedparties, including financial statementpreparers, financial statement users andauditors, and others for the standard to be enacted.

B.

When deliberating on issuing a finalstandard, the standard setters consider the input obtained from outside parties at these various stages in the standard setting process.

C.

After an exposure draft isissued, standard setters sometimes hold roundtablesdiscussions, or publicforums, which include these various parties.

D.

When an exposure draft isissued, interested parties are invited to prepare comment letters.

E.

Once an issue is added to theagenda, standard setters usually have public meetings where they seek comment from these interested parties.

F.

The Financial Accounting Foundation(FAF) identifies a financial reporting issue based on recommendations fromanalysts, governmentagencies, or other market participants. The FAF Chairperson then decides whether to add the issue to the technical agenda.

G.

Accounting standard setters follow a process to set accounting standards which involves considering the input of financial statementpreparers, users and other interested parties at several stages. Standard setters consider input from these parties to identify financial reporting issues to pursue.