FAF Strategic Plan

The FAF Strategic Plan outlines an enhanced organization-wide focus on the Foundation's mission, goals, and objectives, and further aligns its standard-setting, business function, and oversight activities. In developing the Strategic Plan, consideration was given to findings of FASB and GASB constituency studies. The Strategic Plan is expected to enhance the effectiveness and success of the FAF and its standard setting Boards and Advisory Councils. The mission statement, organizational structure and functions, goals, and objectives contained in the FAF Strategic Plan are presented below.

MISSION STATEMENT

Establish financial accounting and reporting standards, through an independent and open process, resulting in financial reports that provide decision-useful information.

ORGANIZATION STRUCTURE AND DELEGATION OF FUNCTIONS

• The Financial Accounting Foundation (FAF), Financial Accounting Standards Board (FASB), Governmental Accounting Standards Board (GASB), Financial Accounting Standards Advisory Council (FASAC), and Governmental Accounting Standards Advisory Council (GASAC), were established to perform distinct functions in the process of establishing and improving financial accounting and reporting standards.
• The FAF is a non stock corporation. Its purposes include establishing and improving financial accounting and reporting standards and educating investors, creditors, preparers and other providers of financial information, reporting entities and auditors in regard to such standards. Its responsibilities include administration, finances and oversight but it does not play any role with respect to development, determination or explanation of substantive financial accounting and reporting standards.
• The FASB is delegated all powers and authority of the FAF to set standards of financial accounting and reporting for all non-governmental public, private and not-for-profit enterprises.
• The GASB is delegated all powers and authority of the FAF to set standards of financial accounting and reporting for state and local governmental units.
• The FASAC is responsible for consulting with the FASB on technical issues on the Board’s agenda, project priorities, matters likely to require the attention of the FASB, selection and organization of task forces and such other matters as may be requested by the FASB or its Chairman.
• The GASAC is responsible for consulting with the GASB on technical issues on the Board's agenda, project priorities, matters likely to require the attention of the GASB, selection and organization of task forces and such other matters as may be requested by the GASB or its Chairman. The GASAC also is responsible for aiding the FAF in raising funds for the GASB and GASAC.

GOAL I
Develop and maintain a highly effective, comprehensive and codified set of standards that are understandable and practical to implement, through an effective and efficient process balancing due process with timeliness, that require financial statements to provide critical information to investors, lenders, funders and taxpayers.

• GOAL I—OBJECTIVE 1
  Produce standards that respond to the needs of users.
• GOAL I—OBJECTIVE 2
  Produce standards that are understandable, cost effective, practical to implement and sustainable over time, which will help reduce the complexity of financial reporting.
• GOAL I—OBJECTIVE 3
  Ensure a standard-setting process that balances timeliness with the need for due process.
• GOAL I—OBJECTIVE 4
  Advance and contribute to the education of the public, investors, creditors, preparers of financial reports, and auditors in regards to standards of financial accounting and reporting.
• GOAL I—OBJECTIVE 5
  Seek international convergence of non-governmental standards.
• GOAL I—OBJECTIVE 6
  Review eXtensible Business Reporting Language (XBRL) financial reporting taxonomies to determine whether they completely and accurately reflect US GAAP.

GOAL II
Recruit and retain highly qualified Trustees, Board Chairs and Members, Advisory Council Chairs and Members and Board and Foundation staff with relevant expertise and experience.

• GOAL II—OBJECTIVE 1(a)
  Pursue the selection of Trustees who possess high skill and relevant professional competence, as well as a user orientation.
• GOAL II—OBJECTIVE 1(b)
  Pursue the selection of Board Chairs and Members, Advisory Council Chairs and Members and staff who possess high skill and relevant professional competence including financial reporting expertise, as well as a user orientation.
• GOAL II—OBJECTIVE 2
  Maintain a compensation structure that attracts and retains highly qualified people.
• GOAL II—OBJECTIVE 3
  Provide a work environment that supports effective and efficient standard setting.

GOAL III
Obtain and prudently deploy the resources needed for the operation of the Foundation, the Boards, and the Advisory Councils in a transparent and accountable manner.

• GOAL III—OBJECTIVE 1
  Obtain adequate sources of funding to sustain all of the activities necessary to carry out the mission.
• GOAL III—OBJECTIVE 2
  Ensure efficient fiduciary use of funds received from all sources.
• GOAL III—OBJECTIVE 3
  Maintain annual budgets and reporting that achieve accountability, transparency and credibility.
• GOAL III—OBJECTIVE 4
  Prudently manage investment of reserves.

GOAL IV
Protect independent, private sector standard setting by the Boards through education and advocacy directed toward public and private opinion leaders so that the mission is broadly understood, accepted and supported.

• GOAL IV—OBJECTIVE 1
  Develop public and private sector opinion leaders informed about and supportive of the Foundation and its Boards.
• GOAL IV—OBJECTIVE 2
  Maintain independent funding sources.
• GOAL IV—OBJECTIVE 3
  Prevent intervention into the work of the Boards.
• GOAL IV—OBJECTIVE 4
  Select Trustees committed to supporting and protecting the mission.