SEC Approves FASB’s Accounting Support Fee
Despite controversy over a contribution made by the Financial Accounting Foundation (“FAF”), the U.S. Securities and Exchange Commission (“SEC”) has approved the annual accounting support fee for the generally accepted accounting principles’ (“U.S. GAAP”) standard-setter. Issued on April 3rd, Release No. 33-9569, Order Regarding Review of FASB Accounting Support Fee for 2014 Under Section 109 of the Sarbanes-Oxley Act on 2002 doesn’t reveal how much the Financial Accounting Standards Board (“FASB”; “the Board”) would receive, but a spokesman mentioned it will receive around $24 million.
Collected through public companies and publication sales for the standard-setter, this year’s accounting support fee was under fire due to the FAF’s contribution to the International Financial Reporting Standards (“IFRS”) Foundation. The contribution was used to support costs related to remaining work on joint IFRS and U.S. GAAP projects. However, since the FASB is the FAF’s parent organization and over half of its funding is through accounting support fees, the Board’s use of funds to make the payment was heavily questioned by other organizations.
In response to the controversy, a spokesman for the FASB referenced the FAF President and CEO’s February statement, which stated FAF trustees sought advice from the SEC before making the contribution. The SEC has yet to comment on the matter.