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Friday, September 18, 2009

Certain precepts in the conduct of its activities

  • To be objective in its decision making and to ensure,insofar as possible, the neutrality of information resulting from its standards. To be neutral, information must report economic activity as faithfully as possible without coloring the image it communicates for the purpose of influencing behavior in any particular direction.
  • To weigh carefully the views of its constituents in developing concepts and standards. However, the ultimate determinant of concepts and standards must be the Board’s judgment, based on research, public input, and careful deliberation about the usefulness of the resulting information.
  • To promulgate standards only when the expected benefits exceed the perceived costs. While reliable, quantitative cost-benefi t calculations are seldom possible, the Board strives to determine that a proposed standard will meet a signifi cant need and that the costs it imposes, compared with possible alternatives, are justifi ed in relation to the overall benefi ts.
  • To bring about needed changes in ways that minimize disruption to the continuity of reporting practice. Reasonable effective dates and transition provisions are established when new standards are introduced. The Board considers it desirable that change be evolutionary to the extent that it can be accommodated by the need for relevance, reliability, comparability, and consistency.
  • To review the effects of past decisions and interpret, amend, or replace standards in a timely fashion when such action is indicated.
The FASB is committed to following an open, orderly process for standard setting that precludes placing any particular interest above the interests of the many who rely on fi nancial information. The Board believes that this broad public interest is best served by developing neutral
standards that result in accounting for similar transactions and circumstances in a like manner and accounting for different transactions and circumstances in a different

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