What Process Did the FASB Follow in Developing Statement 133?
Because the actions of the FASB affect so many organizations, its decision-making process must be fair.The FASB carefully considers the views of all interested parties-users, issuers, and auditors of financial information.Our Rules of Procedure require an extensive due process.It involves public meetings, public hearings or roundtables, and exposure of our proposed standards to external scrutiny and public comment.The Board makes final decisions after carefully considering and analyzing the input of all parties.While this process is similar to the Administrative Procedure Act process used for federal agency rulemaking, it provides far greater opportunities for interaction with the Board by interested parties.It is also focused on making technical, rather than political or legal judgments. Some of the highlights of the FASB’s due process in developing Statement 133 are as follows: • The Board began deliberating issues related to derivatives and hedging activities at public meetings in J
