Financial Accounting Foundation Seeks Stakeholder Input on Proposed Changes to GASB Agenda-Setting Process

Norwalk, CT, February 26, 2013—The Financial Accounting Foundation Board of Trustees today issued for public comment a proposal to revise the agenda-setting process for the Governmental Accounting Standards Board (GASB) to assist the Trustees in assessing the scope of the GASB´s standard-setting activity.

The proposal is the result of discussions between the Trustees and GASB leaders following completion of an independent academic study that documented GASB stakeholders´ views on the scope of the GASB´s standard-setting activities and authority. The study revealed a lack of consensus about the appropriate scope of the GASB´s activities and involvement in government accountability reporting.

"The FAF Trustees believe modifying GASB´s agenda-setting process to allow early stakeholder input is the best way to address scope of authority issues," said FAF Chairman Jeffrey J. Diermeier. "Assessing a project to be ‘in scope´ early in the agenda-setting process would allow appropriate Trustee oversight while preserving the GASB´s standard-setting independence. We are seeking stakeholder input to help determine whether the proposed changes will help resolve these issues."

The GASB´s current agenda setting process involves three principal phases: 1) Issue identification; 2) Research, and 3) Current technical agenda development. The GASB has classified governmental financial information into three categories:

The FAF Trustees are proposing the following modifications to the GASB´s agenda-setting process that address the three groups of governmental financial information:

The Trustees´ priority will be to ensure that the GASB´s standard-setting processes are independent, and free from undue influence or special interests. Therefore, the revised agenda-setting processes will be part of the Trustees´ GASB oversight, not an appeals process for GASB standard setting.

The proposal, as well as the independent academic study Independent Academic Study of the Scope of the GASB: Accounting and Accountability – Topics and Processes is available at the FAF website. Stakeholders can email comments to or mail them to the following address by April 30, 2013: GASB Agenda Process, Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856.