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AccountingWEB

Accounting Standard-Setters Issue Their 2015 Strategic Plan

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Apr 13th 2015
Staff Writer and Editor AccountingWEB
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The Financial Accounting Foundation (FAF) and the two standard-setting boards it oversees – the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB) – issued their 2015 Strategic Plan on April 9, which lays out the long-range vision and mission of each of the groups and the organization collectively.

The plan represents an evolution and a refinement of previous plans and mission statements developed by the groups, according to the FAF, an independent, private-sector, not-for-profit organization responsible for establishing and improving financial accounting and reporting standards for public and private companies, not-for-profit organizations, and state and local governments.

“Our collective vision is to be a recognized leader in financial accounting and reporting,” the document states. “Our collective mission is to establish and improve financial accounting and reporting standards to provide useful information to investors and other users of financial reports, and educate stakeholders on how to most effectively understand and implement those standards.”

The plan recognizes that the FASB and the GASB are solely responsible for developing and establishing financial accounting and reporting standards. The plan also recognizes that the role of the FAF management team is to provide strategic counsel and services that support the mission, activities, and independence of the FASB and the GASB. The FAF trustees are responsible for overall governance of the FAF, oversight of the FASB and the GASB, and for protecting and respecting the independence of the standard-setting process.

“In developing these standards, the FASB will first consider the best interests of those who provide capital to companies and not-for-profit organizations (investors, lenders, other creditors, and donors), both in the United States and other markets that use or reference Generally Accepted Accounting Principles,” the strategic plan states. “The GASB will first consider the best interests of those who use financial statements prepared by state and local governments, including citizens, the elected officials who represent them, and investors in municipal bonds.”

The strategic plan also describes four goals that, if achieved, will enable the FASB, the GASB, the FAF trustees, and the FAF management “to realize our collective vision and fulfill our collective mission,” the document states. Those four goals are:

  • Practicing and promoting continued excellence in standard setting.
  • Demonstrating a commitment to leadership in standard setting.
  • Building and maintaining trust with stakeholders.
  • Promoting public discourse on current and future financial reporting issues.
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