(1)
Financial Accounting Standards Board (FASB): FASB is an independent 7 member board, of accounting professionals overseeing the creation of financial statement. FASB standards are generally known as GAAP.
Generally Accepted Accounting Principle (GAAP): Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles, standards, and procedures that the companies must follow at the time of preparation of the financial statements.
To Explain: The desired benefits from revising an accounting standard.
(2)
To Explain: The possible costs that could arise from revision of accounting standard.
(3)
To Explain: The steps to be taken by FASB to assess possible benefits and costs that could arise from revision of accounting standard.
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INTERMEDIATE ACCOUNTING
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