GASB Scope of Authority & FAF Oversight Role

Analysis/Comment

It outlines a revision to a standard where GASB would have to consult with the FAF Trustee & Setting Process Oversight committee to determine if certain information considered by GASB for standard setting activities (financial accounting and reporting information) are within the scope of the Board’s standard setting mission.

The Revised Proposal

The proposal will propagate separation of duties and independence between GASB and FAF Trustee and oversight committee.

A comprehensive consultation process and operation procedure for scope and group will be arrived at because of the due diligence and constructive discussion by the FAF Trustee and GASB.

Pros to the Proposal

The standards on setting authority arrived at by GASB will carry more weight since there is an input from an oversight committee.

Pros Continues

Longer lag-time to decide on a standard setting process/consultation process since GASB will need to consult with FAF Oversight Committee.

Too much interference with GASB’s standard –setting process and independence.

Cons to the Proposal

It will be of best interest to stakeholders for the FAF oversight committee to exercise their due diligence of oversight and counsel to GASB thus avoid policy making decisions.

Conclusion