The US’ Financial Accounting Foundation (FAF) has introduced an enhancement to make it easier for stakeholders to raise potential concerns about compliance with the due process procedures of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).
This enhancement, available to the public via the FAF website, enables stakeholders to flag alleged failures of either the FASB or the GASB to follow their due process procedures as outlined in the FAF By-Laws for the FAF’s Oversight Committee.
Stakeholder correspondence with the Oversight Committee will require reasonable specificity regarding an alleged failure by either Board to follow due process on an authoritative standard setting project.
Correspondence can be anonymous, but it will not be possible for Committee members to direct any follow-up questions to anonymous authors.
If the allegations raise meaningful due process issues, the Oversight Committee will investigate further. If the Committee determines the FASB or the GASB did not appropriately follow their due process, the Trustees will determine what remedial action is necessary based on the circumstances.
FAF trustee and co-chair of the Oversight Committee David Lillard said: “Soliciting stakeholder perspectives has always been a vital part of our governance model, just as it is to FASB’s and GASB’s standard-setting processes. We want stakeholders to know they can communicate directly with the Oversight Committee if they have important concerns to share about how faithfully FASB and GASB members are following their due process.”
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