News Release 08/22/17
FAF TRUSTEES AGREE TO RETAIN GASB SCOPE OF AUTHORITY POLICY WITHOUT MODIFICATION
Norwalk, CT—August 22, 2017—The Board of Trustees of the Financial Accounting Foundation today approved a report, Three-Year Review of GASB Scope of Authority: Consultation Process Policy, that leaves unchanged the Governmental Accounting Standards Board’s (GASB) scope of authority policy.
That policy outlined a pre-agenda consultation process for the GASB and the FAF’s Standard-Setting Process Oversight Committee to follow in determining whether information the GASB might consider for standard-setting activity is “financial accounting and reporting information” within the scope of the GASB’s standard-setting mission. The November 2013 FAF report that introduced the policy and the related consultation process called for the FAF to review the effectiveness of the consultation process three years after implementation.
“I’m very pleased that the Trustees have affirmed the effectiveness of the consultation process, which strikes the right balance by maintaining the independence of the GASB, while ensuring appropriate oversight by the Trustees,” said FAF Chairman Charles H. Noski. “We would like to express our thanks to the stakeholders who shared their thinking with us and helped us reach our conclusions.”
The Trustees also agreed to review the policy again within five years.
Additional information is available on the GASB Scope of Authority page on the FAF website.
About the Financial Accounting Foundation
Established in 1972, the Financial Accounting Foundation (FAF) is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut responsible for the oversight, administration, financing, and appointment of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). The FASB and GASB establish and improve financial accounting and reporting standards—known as Generally Accepted Accounting Principles, or GAAP—for public and private companies, not-for-profit organizations, and state and local governments in the United States. For more information, visit www.accountingfoundation.org.
About the Governmental Accounting Standards Board
Established in 1984, the GASB is the independent, private-sector organization based in Norwalk, Connecticut, that establishes accounting and financial reporting standards for U.S. state and local governments that follow Generally Accepted Accounting Principles (GAAP). These standards are recognized as authoritative by state and local governments, state Boards of Accountancy, and the American Institute of CPAs (AICPA). The GASB develops and issues accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to taxpayers, public officials, investors, and others who use financial reports. For more information, visit www.gasb.org.