FASB moves to downsize
The body responsible for US standards will have fewer board members under resturcturing plan
The Financial Accounting Standards Board is to downsize, with two fewer
members and an increase in the power of its chairman.
The board will now include five members rather than seven. There are several
vacancies coming up and the trustees had been concerned that training new
members might slow down plans to converge US and international accounting
But the moves may also be seen in the context of the moves globally to
international financial reporting standards, devised by the International
Accounting Standards Board. The FASB faces a debate over its future as IFRS
takes hold across the world.
The board’s oversight body, the Financial Accounting Foundation, proposed the
changes in December, with the plan criticized by many.