Inside the FASB – How Financial Accounting Standards Are Developed

Course Overview:

This course explores the Financial Accounting Standards Board (FASB), its mission, structure, and how it develops accounting standards. It helps CPAs understand the roles of the board and its advisory groups in shaping financial reporting. The course covers the standard-setting process, including how stakeholder input is gathered through comment letters and the post-implementation review process. It also explains the conceptual framework that guides standard development and how changes to accounting standards are communicated

Learning Objectives:

 Upon completion of this course, you will be able to:

• Identify the mission and organizational structure of the FASB
• Recognize the roles of board members and advisory groups in the standard-setting process
• Differentiate among the key advisory groups and their influence on financial reporting standards
• Determine how stakeholder perspectives are incorporated through these groups
• Recall the steps involved in the FASB standard-setting process
• Identify the role of public comment letters in shaping accounting standards
• Distinguish the purpose and timing of the post-implementation review process
• Select how stakeholder engagement impacts standard development
• Recall the steps involved in the FASB standard-setting process
• Identify the role of public comment letters in shaping accounting standards
• Distinguish the purpose and timing of the post-implementation review process
• Select how stakeholder engagement impacts standard development
• Identify the purpose of the conceptual framework in financial accounting
• Recognize the key elements of the concept statements, including reporting objectives and qualitative characteristics
• Differentiate how the conceptual framework guides standard-setting decisions
• Recall the importance of consistency and transparency in applying GAAP
• Identify the purpose and structure of Accounting Standards Updates (ASUs)
• Recognize how ASUs communicate amendments, clarifications, and technical corrections to GAAP
• Distinguish the practical implications of ASUs for financial statement preparers and auditors
• Determine how to stay current with new ASUs and changes to accounting standards