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FAF strategic plan confirms that convergence may happen in instances but is not a top priority for the FASB

  • FAF (US Financial Accounting Foundation) (lt blue) Image
  • FASB (US Financial Accounting Standards Board) (lt blue) Image

10 Apr 2015

The US Financial Accounting Foundation (FAF) board of trustees has approved a final version of the strategic plan for the FAF, the Financial Accounting Standards Board (FASB), and the Governmental Accounting Standards Board (GASB), which outlines the three organisations' long-term vision and goals.

As stressed before, the strategic plan confirms that the FASB's overall strategy is to improve financial reporting in general, but that in doing so "the FASB will first consider the best interests of those who provide capital to companies and not-for-profit organizations (investors, lenders, other creditors, and donors) both in the U.S. and other markets that use or reference Generally Accepted Accounting Principles (GAAP)". However, the plan adds that the FASB will continue to work with other standard-setters internationally, though still with the topmost priority of improving the quality of US GAAP:

As an integral part of this strategy, the FASB will work to maintain and strengthen its existing cooperative relationships with other national and regional standard setters. The broader flow of information and ideas resulting from these relationships mutually informs each standard setter’s thinking and contributes to the shared understanding of perspectives and circumstances that can reduce or avoid unnecessary differences among standards used internationally. In some cases, however, the FASB (or other national standard setters) may conclude that the best interests of its own capital markets outweigh the goal of completely converged accounting standards.

The FAF strategic plan thus reflects the FASB comments on comparability in international accounting standards that were added to the FASB website post convergence.

Please click to access the following information on the FAF and FASB websites:

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