Standard Setting Should Remain In the Private Sector

In lieu of an abstract, below is the essay\u27s first paragraph.The Financial Accounting Standards Board (FASB) is the body that establishes accounting standards in the United States. The FASB has a specific operating procedure that it goes through before it will issue a statement for a new standard. During the early stages of this process, a task force is appointed to research a topic of concern and a memorandum is issued to invite discussion. Then there is a public comment period, during which information from and views of interested parties are accepted and reviewed. Some parties that often give input are representatives of CPA firms and interested corporations, security analysts, members of professional accounting associations, and academics. The first public hearings are held to accept oral presentations from these parties. Then the FASB deliberates on its findings in order to issue an exposure draft. More public hearings are held, which enable the FASB to modify the exposure draft if they deem it necessary. The final step in this process is a vote and the issuance of a statement. This process is used so that accounting standards are developed in an efficient manner with due process in a public forum