Answer
FALSE
Work Step by Step
FASB is recognized by SEC, however, it continues to remain an independent, private body governed by the Financial Accounting Foundation (FAF). FASB is required to follow a due process in order to set an accounting standard. The process includes identification of a reporting issue, research, issue of an Exposure draft for views of the various stakeholders and public comment, evaluating solutions basis those comments and research, and finally setting up a standard for implementation. Following this process, the set standard is continuously reviewed in order to check its effectiveness in the existing financial environment.
