Answer
The procedure by which a topic is identified as suitable for study by the Financial Accounting Standards Board (FASB) includes.
•Issues or problems come to the attention of the FSB from various sources such as from the Emerging Issues Task Force.
• Topic(s) are then put on the FASB plan.
• The arrangement for significant technical agenda is given prompt public notice in the FASB's pamphlet "Status Report."
• A team of specialists from different segments is formed to characterize issues,
problems, and options identified with the topic.
• The team inputs are submitted to the FASB's Technical Activities Division for research and examination.
Work Step by Step
Major sources of arising issues may come from
– the Emerging Issues Task Force which may distinguish critical developing accounting issues that it feels the FASB should address.
– the Financial Accounting Standards Advisory Council which addresses the FASB
on the priority of issues and urges the FASB to embrace new projects.
– the Research and Technical Activities Staff of the FASB, which screens business periodicals for stories concerning uncommon exchanges or occasions and may identify a developing issue.
– the close contact it keeps with different business, government, industry,
Proficient budgetary gatherings, and the SEC.
– its staff which may learn of raising issues as it reacts to specialized request got from preparers and examiners.
