FASB faces major overhaul

The Financial Accounting Foundation (FAF), parent group of the
Accounting Standards Board
(FASB) as well as USA’s Governmental Accounting
Standards Board, yesterday issued a proposal on a major overhaul of the FASB
board, giving its chairman Robert Herz the power to set the technical FASB
The FAF proposals put out for public comment reduce FASB’s size to five members
from seven and allow the chairman to decide whether to place issues on the
board’s agenda, which is seen as a measure to achieve a more focused board.

Under the proposal, FASB will also require specific backgrounds for its
members from each of four areas – investing, auditing, preparing financial
statements and the academic area.

FAF said the present agency setting was inefficient and giving the FASB chair
the decision-making authority to decide the board’s agenda would further
facilitate and improve the interface with the
International Accounting
Standards Board

Further reading:

FASB launches webcasts on IFRS

FASB sees its future as part of IASB

Related reading

Fiona Westwood of Smith and Williamson.