ACCA Applied Knowledge · Financial Accounting · The regulatory framework
Place these stages of the IASB's due process in the correct order: (1) issue of final standard, (2) setting the agenda, (3) publication of an exposure draft, (4) research and discussion paper.
The correct sequence is setting the agenda, research and discussion paper, exposure draft, then issue of the final standard. Consultation on proposals via the exposure draft must occur before the standard is finalised, and research with a discussion paper comes after the agenda is set.
- A2, 4, 3, 1Correct
- B4, 2, 3, 1
- C2, 3, 4, 1
- D2, 4, 1, 3
Explanation
The IASB first sets its agenda, then carries out research, often publishing a discussion paper. It next issues an exposure draft for comment, and after considering responses publishes the final standard. Placing the exposure draft before research or after the final standard reverses the logical consultation sequence.
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