Today, as the US economy continues to recover from one of the worst financial crises and deepest recessions in their history, the FAF’s work, and that of our standard-setting Boards, is critical. As the organisation charged with overseeing the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB), the FAF is responsible for ensuring the standard-setting process reflects and incorporates the values that will continue to rebuild trust in financial reporting. In 2010, the FAF made significant changes that will advance their mission of establishing and improving financial accounting and reporting standards.

 

Over the past year, the FAF has taken a number of steps to increase transparency and foster more constituent engagement. In December 2010, the FAF introduced video web casting of FASB decision-making meetings to make it easier for their constituents to see and hear the standard-setting process in action. The video casts replaced the audio-only web casts that listeners had said were challenging to follow and understand. The success of these video web casts has led to the recent launch of video web casting of FASB public education sessions. In 2011, they will explore expanding the number and types of meetings available by video cast.

 

FAF took a leadership role in another vital programme in 2010, when it assumed responsibility for the ongoing maintenance of the US GAAP Financial Reporting Taxonomy, applicable to public issuers registered with the US Securities and Exchange Commission (SEC). The US GAAP Financial Reporting Taxonomy is a list of computer-readable tags in eXtensible Business Reporting Language (XBRL) that allows companies to label precisely the thousands of pieces of financial data that are included in typical long-form financial statements and related footnote disclosures. The enhanced role of the FAF in Taxonomy maintenance and development will help to enhance further the integrity of the reporting process for public companies.

 

The FAF will continue to monitor the FASB’s progress on its Memorandum of Understanding projects with the IASB, as they reach a critical point in converging standards. The FAF will focus on the issues and concerns of non-public entities and the standard-setting process. The FAF is nearing implementation of an independent funding method for the Governmental Accounting Standards Board (GASB) through the Dodd-Frank bill, thanks to collaborative and cooperative efforts with various state and local government organisations and others.

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