NORWALK, Conn.--(BUSINESS WIRE)--The Financial Accounting Foundation (FAF) Board of Trustees today approved a key change to the agenda-setting process of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). Decisions regarding project plans, agenda setting, and priority of projects now will be approved by a majority vote of the respective Boards, instead of by the Board chair alone.
“The Trustees and the Board chairs believe that submitting agenda decisions for vote in a public setting brings greater transparency to the standard-setting process”
The FAF Trustees voted to end the “leadership agenda process,” in which the FASB and GASB chairs were vested with the authority to make these decisions, at the suggestion of FASB Chairman Leslie F. Seidman and GASB Chairman Robert H. Attmore. Going forward, all agenda decisions will be voted on by the Boards in public meetings.
“The Trustees and the Board chairs believe that submitting agenda decisions for vote in a public setting brings greater transparency to the standard-setting process,” stated FAF President and CEO Teresa S. Polley. “It will provide stakeholders with greater insight into the considerations that go into agenda decisions, including stakeholder feedback, the urgency of certain issues, and the availability of Board resources.”
In other action, the Trustees accepted the Post-Implementation Review (PIR) report on GASB Statements No. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements, and No. 40, Deposit and Investment Risk Disclosures. Both Statements require note disclosures about deposits and investments, including related credit risks. Additionally, Statement 3 provides accounting guidance for repurchase and reverse repurchase agreements. The PIR review concluded that the standards are largely functioning as intended. The final PIR report will be issued publicly on Thursday, February 28, accompanied by a detailed press release.
The FAF also announced that the PIR team will begin its review of GASB Statements No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, and No. 30, Risk Financing Omnibus—an amendment of GASB Statement No. 10, which establish accounting and financial reporting standards for risk financing and insurance-related activities of state and local governments, including public risk pools.
About the Financial Accounting Foundation
The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board and its counterpart for state and local governments, the Governmental Accounting Standards Board. The FAF also is responsible for selecting the members of both Boards and their respective Advisory Councils. For more information about the FAF, visit www.accountingfoundation.org.
About the Financial Accounting Standards Board
Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.
About the Governmental Accounting Standards Board
The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board’s diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website, www.gasb.org.