AGA Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB) GAFRB Question # 20 Topic 3 Discussion
GAFRB Exam Topic 3 Question 20 Discussion:
Question #: 20
Topic #: 3
GASB establishes standards through a
A.
unanimous vote of the board members, after discussing the results of written and oral comments offered by interested parties on an exposure draft submitted by GASB staff.
B.
vote of the majority of board members, after discussing the results of a preliminary views document submitted by GASB staff.
C.
unanimous vote of the board members, confirming that the standards would improve the usefulness of financial reports.
D.
vote of the majority of board members, after discussing the written and oral comments offered by interested parties on an exposure draft of a statement of proposed standards.
The Governmental Accounting Standards Board (GASB) issues accounting standards after a structured due process that includes:
Publication of a Discussion Document (e.g., Preliminary Views)
Publication of an Exposure Draft
Solicitation and analysis of public comments (written/oral)
Deliberation by the full Board
A majority vote (not unanimous) of the GASB board members is required to approve and issue a final standard.
Relevant References:
GASB Rules of Procedure
GASB Due Process Manual
GASB Website – Standard-Setting Process
Answer: D. vote of the majority of board members, after discussing the written and oral comments offered by interested parties on an exposure draft of a statement of proposed standards
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