FAF BOARD OF TRUSTEES PROFILE

The FAF, FASB, and GASB are governed by a Board of Trustees, an independent body of leaders with diverse personal and professional backgrounds and experience, including accounting, business, investment, capital markets, accounting and business education, financial, government, regulatory, and investor advocacy.

The FAF Board of Trustees oversees and supports the FASB and the GASB (whose members report to the Board of Trustees) as they carry out their missions. Diverse experience, backgrounds, and perspectives are necessary elements when overseeing and promoting an independent standard-setting process.

The Trustees:

• Select and appoint the members of the FASB and the GASB and their advisory councils, the FASAC, the GASAC, and the PCC
  
• Oversee the FASB’s and the GASB’s activities and due process
• Promote and protect the independence of the FASB and the GASB in their establishing and improving financial accounting and reporting standards.

The Trustees exercise general oversight of the organization. However, the Trustees do not oversee technical decisions of the FASB and the GASB in setting standards of financial accounting and reporting; that is the sole responsibility of the standard-setting boards.

Ideal FAF Trustee candidates:

• Are highly regarded within their profession, possess an understanding of the U.S. and global financial and capital markets, and have a strong appreciation for the importance to the markets, the investment community, and the public at large of independent standard setting for financial accounting and reporting. 
• Are committed to the mission of the FAF, the FASB, and the GASB, demonstrate a concern for the public interest, and have an appreciation for the varying interests and perspectives of investors and other users of financial information and the preparers and auditors of financial reports. 
• Demonstrate experience as a corporate or not-for-profit board director or trustee including active governance and oversight responsibilities and committee membership.

The FAF Board of Trustees comprises 14–18 members. Members generally are appointed for a five-year term, and are not eligible for reappointment.

FASB MEMBER PROFILE

The FAF strives to identify and appoint Financial Accounting Standards Board (FASB) members who reflect a diversity of experiences and backgrounds. Balancing diverse views to arrive at the best accounting solutions is inherent to the FASB’s standard-setting process and, by extension, its composition.

To ensure a balance of perspectives on the FASB, the Board of Trustees seeks nominations from a wide array of stakeholders, including:

• Key stakeholder organizations and associations representing a wide range of financial statement users, preparers, and auditors
• Academics
• Public and private companies and organizations
• Regulators; and other government leaders.

The FAF Appointments Committee engages a professional search firm to assist with FASB member searches, which also further expands the pool of potential candidates.

Ideal FASB member candidates possess:

• Strong and current technical understanding of financial accounting and reporting for public companies, private companies, and not-for-profit organizations
• A judicial temperament, with the ability to work collaboratively and collegially, being respectful of varying viewpoints
• Demonstrated thought leadership, intellectual engagement, and strong communication and listening skills.

The FASB members are full-time employees of the FAF and must sever all ties with previous employers, with limited exceptions, to ensure the independence of the Board. Members generally are appointed for a five-year term, and are eligible to be considered for reappointment to an additional term of five years.

GASB MEMBER PROFILE

The FAF strives to identify and appoint Governmental Accounting Standards Board (GASB) members, who reflect a diversity of experiences and backgrounds. Balancing diverse views to arrive at the best accounting solutions is inherent to the GASB’s standard-setting process and, by extension, its composition.

To ensure a balance of perspectives on the GASB, the Board of Trustees seeks nominations from a wide array of stakeholders, including key stakeholder organizations and/or associations representing a wide range of:

• Financial statement users
• Preparers
• Auditors
• Academics
• State and local governments
• Regulators, and other government leaders.

The FAF Appointments Committee engages a professional search firm to assist with GASB member searches, which also further expands the pool of potential candidates.

Ideal GASB member candidates possess:

• Strong and current technical understanding of financial accounting and reporting for state and local governments
• A judicial temperament, with the ability to work collaboratively and collegially, being respectful of varying viewpoints
• Demonstrated thought leadership, intellectual engagement, and strong communication and listening skills.

GASB members, with the exception of the Chair, are part-time employees of the FAF. Thus, they must be mindful of their public responsibilities and the need for public confidence in the independent standard-setting process. It is of the utmost importance that Members be cognizant of avoiding conflicts between their private interests and activities and their duties and responsibilities on the GASB and the public interest that the GASB serves.

The GASB comprises seven members. Members generally are appointed for a five-year term, and are eligible to be considered for reappointment to an additional term of five years.

FASAC MEMBER PROFILE

The primary function of the Financial Accounting Standards Advisory Council (FASAC) is to advise the FASB on issues related to projects on the FASB’s agenda, possible new agenda items, project priorities, procedural matters that may require the attention of the FASB, and other matters as requested by the FASB Chair.
 
FASAC meetings provide the FASB members with an opportunity to obtain and discuss the views of a diverse group of individuals from varied business and professional backgrounds. Diverse experience, backgrounds, and perspectives are important to FASAC’s operations and to the FASB’s independent standard-setting process. The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports.

The FASAC comprises approximately 35 members who represent a broad cross section of the FASB’s stakeholders. Members are drawn from the ranks of CEOs and CFOs of public and private companies and not-for-profits of varying size, senior partners of public accounting firms, executive directors of professional organizations, and senior members of the academic and analyst communities―all with an interest in the integrity of full and complete financial reporting and disclosure.
 
Ideal FASAC member candidates possess:

• Experience with and knowledge about the issues involving financial accounting and reporting
• Skills and experience that complement or augment those within the collective membership of FASAC, or other expertise of value to the FASB. 

Council members are appointed by the Trustees of the Financial Accounting Foundation and generally are appointed for an initial one-year term and are eligible to be considered for reappointment to three additional one-year terms.

GASAC MEMBER PROFILE

The primary function of the Governmental Accounting Standards Advisory Council (GASAC) is to advise the GASB on issues related to projects and research on the GASB’s agenda, emerging issues in practice, technical plan priorities, and other matters as requested by the GASB Chair. GASAC meetings provide the GASB with an opportunity to obtain and discuss the views of a very diverse group of individuals from varied professional and occupational backgrounds.

Additionally, GASAC members act as critical communication conduits between the GASB and its stakeholder organizations:

• Conveying the views of the organizations and their members to the GASB
• Helping the GASB to communicate effectively with the organizations and their members.

The GASAC comprises approximately 30 members who represent a broad cross section of the GASB’s stakeholders. The majority of GASAC members are nominated by the GASB’s stakeholder organizations.

Ideal GASAC member candidates possess:

• Extensive knowledge of the views and concerns of the members of the organization they are nominated by
• Ability and opportunity to communicate with their organization and its members
• Skills and experience that complement or augment those within the collective membership of GASAC, or other expertise of value to the GASB
• Awareness of the current state and local government financial reporting environment.

GASAC Members are appointed for a two-year term and are eligible to be considered for reappointment to two additional two-year terms.

PCC MEMBER PROFILE

The primary function of the Private Company Council (PCC) is to advise the FASB on private company matters. The PCC uses the Private Company Decision-Making Framework to advise the FASB on the appropriate accounting treatment for private companies for items under active consideration on the FASB’s technical agenda. The PCC also advises the FASB on possible alternatives within GAAP to address the needs of users of private company financial statements.

The PCC comprises 9 to 12 members who represent a cross-section of the FASB’s private company stakeholders. The FAF strives to identify and appoint PCC members from various backgrounds and experiences in preparing, auditing (including compiling and reviewing), and using private company financial statements, including:

• Users of private company financial statements, including bank lenders, equity investors, and/or sureties
• Preparers of private company financial statements from a variety of industries and companies of various sizes
• CPA practitioners from national, regional, and local firms.

Ideal PCC member candidates possess:

• Background and high level of experience in private company financial accounting and reporting
• History of interest and participation in financial reporting matters or standard setting activities
• Current technical understanding financial accounting and reporting.

PCC Members generally are appointed to an initial three-year term, and are eligible to be considered for reappointment to an additional term of up to two years.