Corporate preparers' views on FASB opinions.
Final decisions of the Financial Accounting Standards Board correspond most frequently with opinions expressed in comment letters from public accountants, according to a study by the Financial Executives Institute. Letters from regulators and government employees show the second highest agreement with FASB standards. But, while corporate preparers of financial statements write more comment letters than all other groups combined, their opinions correspond with the final FASB standards least frequently.
To improve their effectiveness in the standard setting process, the report recommends financial executives strive to
* Improve the quality of comment letters, describing the theoretical support for their positions with less emphasis on issues of self-interest.
* Increase the exchange of views with public accountants and direct attention to the costs expected to be incurred by the change in reporting standards.
* Expand cooperation between industry associations and other professional organizations to mobilize the opinions of dispersed financial executives.
* Begin earlier to participate in the FASB's due process.
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|Author:||Baliga, Wayne J.|
|Publication:||Journal of Accountancy|
|Date:||Feb 1, 1990|
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