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Gaap Economic Consequences

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Gaap Economic Consequences
GAAP and Economic Consequences
a) The “due process” procedure includes consultations from financial analysts, accountants, stock exchanges, FASB members and other users. Thereafter, the Board issues an Exposure Draft based upon the meetings and consultations held earlier. The Board calls for public recommendations and discussions on the Draft, after analysis of which the final standard is issued.
b) The term “economic consequences” signifies the adverse impact on the economy and on businesses of imposing an accounting standard without proper deliberation with concerned users. Accounting standards define how a business works and functions in the industry. If all users of such standards are not consulted beforehand, implementation and presentation
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