FAF trustees enhance stakeholder feedback procedures and transparency for FASB, GASB

As part of its continuing efforts to improve its oversight activities and to further increase transparency for stakeholders, the Board of Trustees of the Financial Accounting Foundation (FAF) announced an enhancement that will make it easier for stakeholders to raise potential concerns about compliance with the due process procedures of both FASB and GASB. 

This enhancement, available to the public via the FAF website, enables stakeholders to flag for the FAF’s Oversight Committee alleged failures of either FASB or GASB to follow their due process procedures as outlined in the FAF bylaws. 

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. Ideally, it will cite the specific provisions of the bylaws that have allegedly been violated. 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 FASB or GASB did not appropriately follow their due process, the Trustees will determine what remedial action is necessary based on the circumstances. 

Stakeholders can find the new correspondence form on the FAF website. This form should be used to address concerns about due process only. This form is not a vehicle for stakeholders who are concerned about the outcome or progress of a particular standard-setting project. Any such concerns should be addressed directly to FASB or GASB through their normal stakeholder outreach channels.