An SEC view on FASB agenda consultation
The US Financial Accounting Standards Board (FASB) last year ran a consultation on its future standard-setting agenda, receiving feedback from over 500 stakeholders that it is in the process of considering. A recent statement from Paul Munter, Acting Chief Accountant at the Securities and Exchange Commission (SEC), offers his insights and welcomes the efforts made by the FASB in improving engagement, which he believes is vital to the development of high-quality accounting standards.
“The Commission has long recognized the importance of the FASB’s role as an independent accounting standard setter. Independence, however, does not mean isolation, but rather highlights the need for broad stakeholder engagement to enable the FASB to improve the accuracy and effectiveness of financial reporting and protect investors,” he observes.
“We continue to encourage all stakeholders to engage with the FASB early and often in the standard-setting process. Since the objective of financial reporting is to provide decision-useful information to investors and other users, we particularly encourage investors to share perspectives on what information is useful to them and how they could use that information,” adds Munter. He suggests that investors and other stakeholders are most likely to dedicate time to providing thoughtful feedback when they understand how it will be used, lending importance to ongoing engagement and transparent communications.
The statement also discusses several themes that were frequently identified as priorities in consultation feedback, and the necessity of meeting investor needs in these areas. They include the importance of making the case for change; disaggregation of financial reporting information; climate-related transactions and disclosures; and digital assets.
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