On April 30, 2010 FEI's Committee on Private Companies - Standards, filed a comment letter with John J. Brennan, Chairman of the Financial Accounting Foundation (which oversees the Financial Accounting Standards Board) and with Robert Herz, Chairman of the FASB, expressing concern about the pace of standard-setting under the FASB-IASB MOU.
The letter, co-signed by CPC-S Chair Bill Koch and Vice Chair Daryl Buck, voices concern about the pace of accounting standard-setting under the remaining time under the the FASB-IASB MOU, which calls for close to a dozen new standards to be issued between now and June, 2011, including approximately ten exposure drafts of proposed new standards to be issued for public comment over the next year.
The potential for so many proposals being issued for comment this year and finalized by June 2011 poses three significant concerns: 1. Concern about the impact that a compressed due diligence timeline for FASB may have on the quality of the proposed new standards; 2. Concern about private companies’ ability to thoughtfully analyze and comment on the proposed standards on a timely basis; and 3. Concern about private companies’ ability to successfully implement on a timely basis the expected new standards.