Search Underway for New FASB and GASB Chairs
The Financial Accounting Foundation (FAF) said it has launched a search to replace FASB Chairman Russell Golden and GASB Chairman David Vaudt, both of whom will conclude their terms on June 30, 2020. The FAF’s Board of Trustees Appointments Committee is beginning to search for candidates with varied backgrounds and experience from diverse talent pools. “The roles are positioned at the forefront of financial accounting and reporting,” FAF President and CEO Teri Polley said. “The unique leadership roles of the FASB and GASB Chairs will help determine each board’s future direction in their missions to improve financial accounting and reporting standards for investors and other users of financial reports.” The new FASB chairman will take up the helm during a time of sweeping change in public company accounting. Companies have been implementing some of the broadest public company accounting changes in standards setting history, including Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2016-13, Financial Instruments–Credit Losses (Topic 326), and ASU 2016-02, Leases (Topic 842). The GASB has been working on similar topics for state and local governmental reporting. The new FASB and GASB chairs will serve for a single seven-year term.
2019 IFRS Taxonomy Includes Fair Value Measurement Disclosure Elements
Multinational companies can now access the most current IFRS Taxonomy, which reflects the full IFRS standards as of January 2019, including those that have been issued but are not yet effective. The IFRS Foundation, which oversees the IASB, issued the 2019 IFRS Taxonomy to reflect common reporting practice related to disclosure requirements in International Financial Reporting Standard (IFRS) 13, Fair Value Measurements, the organization said March 27. The IFRS Taxonomy is part of the IFRS Foundation’s efforts to improve the communication of information in financial reports. IFRS 13 defines fair value and provides a framework for measuring fair value whenever another IFRS standard requires or permits fair value measurement or disclosures. It requires disclosures about fair value measurements. “We’re exploring improvements in both the content of financial reports and how that content is delivered,” IASB Board Member Ann Tarca said in a podcast.
Comments Sought on PCAOB Audit Standard on Accounting Estimates
On March 28, the SEC issued the PCAOB’s revised standard on accounting estimates for public comment. In December, the PCAOB published Release 2018-005, Auditing Accounting Estimates, Including Fair Value Measurements, after the board members unanimously voted to finalize standards to improve audits of accounting estimates. The three existing standards use a common approach for substantive testing of estimates but vary in detail in describing the auditor’s responsibilities, resulting in inconsistency in practice. These will be replaced by a single standard to promote a more consistent approach. As part of the SEC’s oversight of the PCAOB, all major decisions made by the board must be approved by the commission before they become effective. The SEC has 45 days to act after publishing the board’s rule for public comment in the register under section 19(b)(2)(A) of the Securities Exchange Act of 1934. The provision allows the SEC to extend the period by an additional 45 days if the agency determines that a longer period is appropriate.