FASAC ISSUES RESULTS OF 2013 FASB STAKEHOLDER SURVEY
Disclosure
framework, Codification improvement projects cited as priorities
Norwalk,
CT—September 17, 2013—The Financial Accounting Standards Advisory
Council (FASAC),
the primary advisory group for the Financial Accounting Standards Board (FASB),
today issued the results
of its recent survey to solicit stakeholder views about the FASB´s future
agenda.
With the completion of several major FASB projects―including
revenue recognition―expected in the coming months, the survey provided FASB
stakeholders with the opportunity to share their views on projects and areas
that they believe are the most important for the FASB to address in the
future.
Respondents represented a diverse population of FASB
stakeholders, including preparers (38%), accounting firms (22%), users (12%),
academic (8%), industry organizations (6%), and other (14%). The survey included
18 questions and was available on the FASB website.
The 2013 survey asked
FASAC and other FASB advisory group members, FASB members, and other interested
constituents for their views on the FASB´s future technical agenda, key areas of
suggested focus, and other related initiatives and efforts.
Key findings
The top 5 projects that
respondents thought should be on the FASB´s agenda for the next 3–5 years were:
- Disclosure Framework
- Accounting for Financial Instruments: Hedging
- Conceptual Framework
- Financial Instruments with Characteristics of Equity
- Pensions (tied for 5th)
- Financial Statement Presentation (tied for 5th).
About 50% of the
responses indicated a need to resolve one (or more) potential projects within
the next 24 months. The projects that seemed to garner the most comments in this
area were the conceptual and disclosure frameworks and the projects on financial
instruments.
Responses also reiterated the importance of the completion
of some of the significant projects currently on the FASB´s agenda, as well as
the continued importance of addressing the needs of the private company and
not-for-profit communities.
The three primary reasons why respondents
thought the FASB should undertake the top priorities were that:
- Simplification is needed
- Better information is needed
- Current information does not provide decision-useful information to
investors and other users of financial reports.
Also of note: about
half of the respondents support the reorganization or enhancement of the FASB´s
Codification. The stakeholder group with the strongest level of support for
reorganization or enhancement among the respondents is accounting firms and
auditors; 71% of respondents from accounting firms responded that the
Codification should be enhanced.
"The FASAC survey provides important
feedback to the FASB on where to focus our efforts, both now and in the future,
in our mission to reduce complexity and improve the relevance of financial
reporting for both public and private companies," stated FASB Chairman Russ
Golden. "The results of the 2013 FASAC survey are a valuable source of
information about what our project priorities should be and will help guide our
decisions about where to deploy resources to address issues stakeholders have
told us are most urgently in need of improvement."
"Part of the FASAC´s
role is to advise the FASB on future project priorities and on possible new
agenda items," noted FASAC Chairman Charles Noski. "While opinions varied on
specific projects and issues, FASB stakeholders agreed that simplifying
standards, and improving the relevance of information that results from those
standards, should be among the Board´s top priorities."
The complete results
of the FASAC survey are available at http://www.fasb.org/.
About
the Financial Accounting Standards Board
Since 1973, the
Financial Accounting Standards Board has been the designated organization in the
private sector for establishing standards of financial accounting and reporting.
Those standards govern the preparation of financial reports and are officially
recognized as authoritative by the Securities and Exchange Commission and the
American Institute of Certified Public Accountants. Such standards are essential
to the efficient functioning of the economy because investors, creditors,
auditors, and others rely on credible, transparent, and comparable financial
information. For more information about the FASB, visit our website at http://www.fasb.org/.