Exposure Draft

DEFINITION of 'Exposure Draft'

A document released by the Financial Accounting Standards Board (FASB) for public commentary on proposed new accounting standards. Since changes in accounting standards can have far reaching effects, it is important to consider public feedback to ensure that unintended consequences from new standards can be minimized.

BREAKING DOWN 'Exposure Draft'

Generally, those who comment on the exposure drafts are practicing accountants who are familiar with the practical impact than new standards would have based on their experience in dealing with similar issues at their firms or with their clients. FASB is able to revise the proposed standards based on the information it receives from comment letters before it issues a formal pronouncement to implement the new standards.

RELATED TERMS
  1. Accounting Standard

    A principle that guides and standardizes accounting practices. ...
  2. Accounting Interpretation

    A statement clarifying how accounting standards should be applied. ...
  3. Financial Accounting Standards ...

    A seven-member independent board consisting of accounting professionals ...
  4. International Accounting Standards ...

    An older set of standards stating how particular types of transactions ...
  5. Financial Accounting Foundation ...

    An independent, private-sector organization that is mainly responsible ...
  6. Accounting Principles

    The rules and guidelines that companies must follow when reporting ...
Related Articles
  1. Investing

    International Financial Reporting Standards (IFRS)

    International Financial Reporting Standards are accounting rules and guidelines governing the reporting of different types of accounting transactions.
  2. Markets

    Accounting Basics: Financial Reporting

    By Bob Schneider Generally Accepted Accounting Principles (GAAP)A key prerequisite for meaningful financial statements is that they be comparable to those for other companies, especially firms ...
  3. Managing Wealth

    Accounting Research Manager: Career Path & Qualifications

    Discover the basic responsibilities of an accounting research manager, the path this career usually takes and the qualifications needed for this career.
  4. Trading

    Forex Basics: Setting Up An Account

    The line between profitable forex trading and ending up in the red may be as simple as choosing the right account.
  5. Markets

    Financial History: The Rise Of Modern Accounting

    Find out how these two have grown hand-in-hand throughout our modern history.
  6. Retirement

    Standard Of Living Vs. Quality Of Life

    What is the difference between a standard of living and quality of life? Find out in this breakdown.
  7. Investing

    GAAP

    Learn more about the generally accepted accounting principles, standards and procedures that companies use to compile their financial statements.
  8. Investing

    The CPA Exam: What You Need To Know

    Interested in becoming a certified public accountant? Here's what you need to know about the CPA exam.
  9. Investing

    Accounting Basics: Branches Of Accounting

    By Bob Schneider Accounting can be divided into several areas of activity. These can certainly overlap and they are often closely intertwined. But it's still useful to distinguish them, not ...
  10. Trading

    FXCM Capital Markets; Account Types, Minimum Deposits And Services Offered

    Account Types and Minimum DepositsThere are three types of accounts offered at FXCM: Standard accounts require a minimum deposit of $2000 (or 200,000 Yen) and caters to most traders or investors. ...
RELATED FAQS
  1. How does the Financial Accounting Standards Board (FASB) establish accounting protocol?

    Find out how the Financial Accounting Standards Board or FASB, identifies possible financial reporting issues and determines ... Read Answer >>
  2. How does financial accounting help decision making?

    Read a brief overview of some areas where financial accounting helps in decision making for investors, lending institutions ... Read Answer >>
  3. How do investors and lenders benefit from financial accounting?

    Read about the benefits of financial accounting, including access to information and transparency between companies and their ... Read Answer >>
  4. What are some good online resources for me to learn about Generally Accepted Accounting ...

    Learn about three authoritative online resources for generally accepted accounting principles, or GAAP: the websites for ... Read Answer >>
  5. Who sets the guidelines for accounting principles?

    Understand the generally accepted accounting principles and why they were put in place. Learn what entity sets the guidelines ... Read Answer >>
  6. How should an accountant correctly record and report a change in an accounting estimate?

    Read about how the FASB treats a change in accounting estimate and what businesses are required to report or disclose when ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center