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In the standards-setting process, what is Step I?
AIssuance of final AS
BConstitution of study groups
CIdentification of broad areas for AS formulation
DFinalisation of exposure draft
Answer & Solution
Correct answer: C. Identification of broad areas for AS formulation
1. Step 1: Per Ch 1, the standards-setting process begins with Step I — Identification of broad areas by ASB.
2. Step 2: Step II is constitution of study groups; Step III is preparation and circulation of draft.
3. Step 3: Hence (B) is correct.
_Source: ICAI BoS CA Inter Paper 1, Ch 1 "Introduction to Accounting Standards"_