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Standard setting is the strategy used to describe steps of acquirement or expertise. Standards setting are analytical to producing sound student- as well as policy-level judgments. It is important that the content of the test and its complexity level be suitable for the judgments made based on the results. Many academic accountants proposed research programs to explore the probability of establishing accounting standards.
The standard setting process involves the following steps–
U.S. and UK accounting standard-setting process has evolved efficiently. There is a close relationship between the Securities and Exchange Commission (SEC), and the Financial Accounting Standards Board (FASB), a private sector body to whom the SEC has commissioned this duty and, a governmental agency legally accountable for establishing accounting standards.
The accounts setting process intends to achieve its goals by-
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