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What is the process for issuing Accounting Standards?
- a)ASB issues standards directly to the public.
- b)ASB drafts are reviewed by the International Accounting Standards Committee.
- c)ASB issues standards after approval by the Council of the Institute.
- d)ASB formulates standards based on suggestions from the public.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
What is the process for issuing Accounting Standards?a)ASB issues stan...
The process for issuing Accounting Standards involves ASB drafting exposure drafts, which are then reviewed and finalized. The final draft is submitted to the Council of the Institute for approval. Once approved, the Accounting Standard is issued under the authority of the Council.
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What is the process for issuing Accounting Standards?a)ASB issues stan...
Understanding the Process for Issuing Accounting Standards
The process of issuing Accounting Standards is crucial for maintaining consistency and transparency in financial reporting. Here's a detailed explanation of why option 'C' is correct:
Role of the Accounting Standards Board (ASB)
- The ASB is responsible for formulating and issuing accounting standards that guide the preparation and presentation of financial statements.
- They ensure that the standards are relevant and reflect the current economic environment.
Approval Process
- Before any accounting standard is finalized, it undergoes a rigorous review process.
- Public Consultation: The ASB often seeks suggestions and feedback from a wide range of stakeholders, including businesses, auditors, and the general public.
- Drafting Standards: Based on this feedback, the ASB drafts the accounting standards, considering the practical implications and challenges faced by the entities that will apply them.
Final Approval
- After drafting, the standards are submitted for approval to the Council of the Institute. This step is crucial as it ensures that the standards meet the necessary quality and relevance before they are officially issued.
- Only after receiving this approval does the ASB issue the standards to the public.
Significance of Option 'C'
- Option 'C' highlights the importance of the Council’s approval, emphasizing that standards are not issued directly by the ASB without oversight.
- This structured process ensures that all accounting standards are well-researched, debated, and refined, promoting the integrity of financial reporting.
In conclusion, option 'C' accurately captures the essence of how accounting standards are developed and validated, ensuring they serve the needs of all stakeholders involved.
The process of issuing Accounting Standards is crucial for maintaining consistency and transparency in financial reporting. Here's a detailed explanation of why option 'C' is correct:
Role of the Accounting Standards Board (ASB)
- The ASB is responsible for formulating and issuing accounting standards that guide the preparation and presentation of financial statements.
- They ensure that the standards are relevant and reflect the current economic environment.
Approval Process
- Before any accounting standard is finalized, it undergoes a rigorous review process.
- Public Consultation: The ASB often seeks suggestions and feedback from a wide range of stakeholders, including businesses, auditors, and the general public.
- Drafting Standards: Based on this feedback, the ASB drafts the accounting standards, considering the practical implications and challenges faced by the entities that will apply them.
Final Approval
- After drafting, the standards are submitted for approval to the Council of the Institute. This step is crucial as it ensures that the standards meet the necessary quality and relevance before they are officially issued.
- Only after receiving this approval does the ASB issue the standards to the public.
Significance of Option 'C'
- Option 'C' highlights the importance of the Council’s approval, emphasizing that standards are not issued directly by the ASB without oversight.
- This structured process ensures that all accounting standards are well-researched, debated, and refined, promoting the integrity of financial reporting.
In conclusion, option 'C' accurately captures the essence of how accounting standards are developed and validated, ensuring they serve the needs of all stakeholders involved.
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What is the process for issuing Accounting Standards?a)ASB issues standards directly to the public.b)ASB drafts are reviewed by the International Accounting Standards Committee.c)ASB issues standards after approval by the Council of the Institute.d)ASB formulates standards based on suggestions from the public.Correct answer is option 'C'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the process for issuing Accounting Standards?a)ASB issues standards directly to the public.b)ASB drafts are reviewed by the International Accounting Standards Committee.c)ASB issues standards after approval by the Council of the Institute.d)ASB formulates standards based on suggestions from the public.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the process for issuing Accounting Standards?a)ASB issues standards directly to the public.b)ASB drafts are reviewed by the International Accounting Standards Committee.c)ASB issues standards after approval by the Council of the Institute.d)ASB formulates standards based on suggestions from the public.Correct answer is option 'C'. Can you explain this answer?.
What is the process for issuing Accounting Standards?a)ASB issues standards directly to the public.b)ASB drafts are reviewed by the International Accounting Standards Committee.c)ASB issues standards after approval by the Council of the Institute.d)ASB formulates standards based on suggestions from the public.Correct answer is option 'C'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the process for issuing Accounting Standards?a)ASB issues standards directly to the public.b)ASB drafts are reviewed by the International Accounting Standards Committee.c)ASB issues standards after approval by the Council of the Institute.d)ASB formulates standards based on suggestions from the public.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the process for issuing Accounting Standards?a)ASB issues standards directly to the public.b)ASB drafts are reviewed by the International Accounting Standards Committee.c)ASB issues standards after approval by the Council of the Institute.d)ASB formulates standards based on suggestions from the public.Correct answer is option 'C'. Can you explain this answer?.
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