News Release 11/07/16
FASB ANNOUNCES REFINEMENTS TO INVESTOR ADVISORY COMMITTEE
Improvements Reaffirm Importance of Investor-Focused Committee
Norwalk, CT, November 7, 2016—The Financial Accounting Standards Board (FASB) today announced refinements to the role of its Investor Advisory Committee (IAC). The IAC was originally formed by the FASB in 2007 as the Investors Technical Advisory Committee. The changes come as part of the FASB’s periodic review of the effectiveness of each of its advisory groups.
“Our review of the IAC reinforced the continued importance of having an advisory group dedicated to investors,” stated FASB Chairman Russell G. Golden. “It also revealed areas where the IAC input could be most impactful to the FASB—areas we will seek to address by refining the objective of the group.”
In its new format, the IAC will advise the FASB in two primary areas, including generalist issues (such as Disclosure Framework, Hedging, and other broad projects added to the future agenda) and emerging trends. Future IAC meetings also may include breakout sessions, as well as substantive public sessions.
FASB member Marc Siegel will serve as the Board liaison to the IAC. FASB Technical Director Sue Cosper and FASB Senior Investor Liaisons Jeff Brickman and Chandy Smith will provide additional support.
Based on its review of the IAC, the FASB decided to retain the committee’s existing membership composition, which includes a mix of buy-side and sell-side investors, credit and equity firms, and ratings agencies. The FASB also plans to broaden the membership to consider those with experience in academia with significant involvement in investor-related academic research and a public or corporate pension fund.
Finally, the FASB will continue to encourage investors and other users of financial statements to provide comment letters on key areas.
“One of the benefits of our advisory groups is that they give us access to views not only from the members themselves, but also from their professional networks,” added Mr. Golden. “We look forward to continuing to expand our ability to access a broader set of investors.”
The FASB currently is seeking nominees for new IAC members. Those interested in submitting a nomination should contact Alicia Posta, FASB assistant director, at firstname.lastname@example.org.
About the Financial Accounting Standards Board
Established in 1973, the FASB is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports. The Financial Accounting Foundation (FAF) supports and oversees the FASB. For more information, visit www.fasb.org.