To Preserve Independence and Impartiality, the Financial Accounting Standards Board

question 147

Multiple Choice

To preserve independence and impartiality, the Financial Accounting Standards Board (FASB) members are required to:

• A) serve the board until their retirement.
• B) sever all ties with any firms or institutions they served prior to joining the board.
• C) sign a non-disclosure agreement and hand over all information of their previous companies to the board.
• D) pass a rigorous two-day, four-part examination on major accounting concepts.

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Definitions:

Pension Plan

A retirement plan offered by an employer, providing financial benefits to employees upon retirement.

Journal Entries

Recorded transactions in the accounting records of a business, showing the financial effects of business transactions.

Settlement Rate

The agreed-upon rate used to calculate the exchange of payments between counterparties in financial transactions, such as in derivatives or loans.

Pension Expense

The cost incurred by an employer to fund its defined benefit pension plan, reflecting the amount needed to cover benefits earned by employees during the period.