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Second FAF Payment Sent to IFRS Foundation

As part of the convergence process between the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”), the Financial Accounting Foundation (“FAF”) has sent the second $1 million payments to the IFRS Foundation. The second installment occurred in June and a final payment is expected later this year. FAF trustees have not recently discussed the third payment and do not plan to anytime soon, and the subject was not mentioned during the public portion of the August 19th quarterly meeting.

Due to previous complaints, the lack of discussion is surprising to some. Before being announced, Securities and Exchange Commission (“SEC”) Chair Mary Jo White approved and released an official statement giving her support to the payments. However, SEC commissioners were not informed of the payments ahead of time. An SEC spokeswoman did not say if the issue had been discussed with FAF representatives since then.

Groups like the National Association of State Boards of Accountancy (“NASBA”) had initially questioned where the payments would originate. Remarking on the payment arrangement, NASBA said the decision transpired “without the usual transparency” and stakeholder input taken into account.

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