Financial Accounting Foundation Seeks New FASAC Members
New members are requested for the Financial Accounting Standards Board’s (“FASB”) main advisory panel. The Financial Accounting Foundation is currently seeking candidates to join the Financial Accounting Standards Advisory Council (“FASAC”), a 35-member group that offers feedback on the FASB’s standard-setting projects and its priorities. The Financial Accounting Foundation wants nominees from private and public companies with a background in the financial services, retail, manufacturing, transportation, health care, agriculture, or service sector. Investors, such as securities analysts and hedge fund or private equity managers, and investment bankers, are also encouraged. Selected members will serve four one-year terms with the FASAC.. Read More.
FASB and FASAC Discuss Technology’s Role in Future Standard-Setting
Without providing a clear picture of how the Financial Accounting Standards Board’s (“FASB”) agenda will be impacted by technological advances, the board’s Financial Accounting Standards Advisory Council (“FASAC”) considered the future of financial reporting at its June 15 meeting. FASB and FASAC members both agreed investment firms’ technology use has evolved to the point that financial reporting may also change. FASB member and former fund manager Harold Schroeder stressed that companies, auditors, and standard-setters are facing a rapidly changing business environment with multiple users that rely on financial information. Schroeder said as time goes on, the evolving financial landscape changes. Read More.
FASB Member Questions Revenue Standard
Last week during a meeting of the Financial Accounting Standards Board’s (“FASB”) Financial Accounting Standards Advisory Council, FASB member Lawrence Smith expressed uncertainty about Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Smith said that implementation of the revenue recognition standard will be of significant costs to companies, and the FASB would’ve been better off making targeted improvements to its revenue guidance instead of a complete rewrite. He also noted that smaller accounting firms and companies do not have experts to help with the standard or Codification. As a result, those firms and companies are making mistakes because they are. Read More.
FASAC Supports Liabilities and Equity Guidance Overhaul
For the past 30 years, the Financial Accounting Standards Board (“FASB”) has tried to fix the complex areas of its liabilities and equity guidance. Efforts have resulted in little success, so the FASB’s Financial Accounting Standards Advisory Council (“FASAC”) wants a major overhaul of Topic 480, Distinguishing Liabilities from Equity. At the FASAC’s December 15 meeting, the majority of members suggested the FASB take a holistic approach in improving the guidance, and address the matter as a whole rather than target certain aspects. FASAC member Mark LaMonte said the issue is complex enough that a segmented approach would not help. Read More.
FASAC Adds Five New Members
On Thursday, the Financial Accounting Foundation’s Board of Trustees appointed the following members to the Financial Accounting Standards Advisory Council (“FASAC”): Louis Zahorak, investment director of Head of Credit Research—Global Fixed Income at CalPERS Susan Callahan, director of Americas Accounting and Global Accounting Policy at Ford Motor Company Richard Forrestel, Jr., treasurer at Cold Spring Construction Company Bob Mims, controller/director of investments at Ducks Unlimited Inc. Thomas White, partner and general counsel at WilmerHale As FASAC members, the appointees will provide guidance to the Financial Accounting Standards Board regarding strategic affairs, projects, and other issues impacting the board’s standard-setting efforts.. Read More.
FASAC Meeting on Tuesday
Tomorrow at 8:30 a.m. EST, the Financial Accounting Standards Advisory Council (“FASAC”) will meet to discuss the role of judgment in financial reporting and possible improvements to cash flow statements. According to the Notice of Open Meetings , the FASAC will also hear highlights from the Financial Accounting Standards Board (“FASB”) chairman, and representatives from Securities and Exchange Commission’s Office of the Chief Accountant and Public Company Accounting Oversight Board’s Office of the Chief Auditor. All general sessions of the meeting will be open for public observation. Break-out group sessions, which are closed from the public, will be held from 9:15 –10:30 a.m. EST,. Read More.