Answer
a)
Under due process, the discussion topics are included in the board's deliberations. Secondly, preliminary research relating to the topic is conducted. Thirdly, public hearings regarding the standards are conducted. Fourthly, responses are evaluated, and changes are proposed. Finally, an exposure draft is released.
b)
The "economic consequences" are the financial repercussions an entity would face due to users relying on financial information arrived at after applying a certain standard. The consequences have a bearing on the wealth status of the issuers of the financial statements. The economic consequences are an outcome of users of financial statements' behaviors.
c)
The proposed standards may diminish companies' capacity to handle risks.
The execution of the new standard will be costly for the companies due to its complexity.
d)
This letter aims to oppose the hurried adoption of the standard dealing with “derivatives and hedging.”
e)
Being representatives of Americans, the Congress members are powerful. Their power permits them to summon members of the SEC and agencies such as FASB and exert pressure on them. For example, in 2009, Congress pressurized FASB to alter accounting rules in a way that would favor banks that were grappling with crumbled securities. The rules will lower the amounts of losses that such banks reported.
Work Step by Step
a)
Under due process, the discussion topics are included in the board's deliberations. Secondly, preliminary research relating to the topic is conducted. Thirdly, public hearings regarding the standards are conducted. Fourthly, responses are evaluated, and changes are proposed. Finally, an exposure draft is released.
b)
The "economic consequences" are the financial repercussions an entity would face due to users relying on financial information arrived at after applying a certain standard. The consequences have a bearing on the wealth status of the issuers of the financial statements. The economic consequences are an outcome of users of financial statements' behaviors.
c)
The proposed standards may diminish companies' capacity to handle risks.
The execution of the new standard will be costly for the companies due to its complexity.
d)
This letter aims to oppose the hurried adoption of the standard dealing with “derivatives and hedging.”
e)
Being representatives of Americans, the Congress members are powerful. Their power permits them to summon members of the SEC and agencies such as FASB and exert pressure on them. For example, in 2009, Congress pressurized FASB to alter accounting rules in a way that would favor banks that were grappling with crumbled securities. The rules will lower the amounts of losses that such banks reported.
