FASB News

Subtle Rebuke over Investor Outreach Efforts

FASB published a detailed report of its outreach with investors, which showcased how it regularly engages with that business demographic at every stage of its standards-setting process. In tandem with the report, FASB launched an enhanced investor web portal, a “one-stop shop” launched a decade ago to provide easy-to-access information on projects of interest to investors, investor-focused educational videos on specific standards, and guidance on how investors can share their views on all FASB activities. “Investor perspectives are critical to the Board’s ability to develop effective standards, so we undertake a number of initiatives to proactively engage this stakeholder group in our standard-setting process,” FASB Chair Richard Jones said in a statement. “The report explains our investor outreach program, activities over the last year, how we’ll continue to build on those initiatives to enhance our investor outreach efforts, and, perhaps most importantly, how investors can share their views with us.” The report comes months after a group—Alliance of Concerned Investors— told the SEC that they believed FASB was not meeting its mandate to investors and suggested the board needed to be overhauled.

Taxonomy Staff Propose Data Quality Committee Rules, Technical Guide

The FASB’s Extensible Business Reporting Language (XBRL) team proposed data quality committee (DQC) taxonomy rules and a related technical guide for public comment, according to an August 24, 2021, board alert. Specifically, FASB staff published proposed DQC Rules Taxonomy (DQCRT) for 2022 to improve exposure to and compliance with the XBRL US DQC rules. The guide provides technical details of the proposed DQCRT. Comments are due by September 23 and can be submitted to [email protected], the announcement states.

PCAOB News

Two Board Members to Depart

PCAOB members Rebekah Goshorn Jurata and Megan Zietsman said they have individually notified the SEC of their intentions to resign from the board on the earlier of October 1 or the date of the appointment of five board members. Their intent to step down comes as SEC Chair Gary Gensler in June formally started looking for qualified candidates to fill all five coveted PCAOB seats. Current board members can apply, and acting Chair Duane DesParte is said to have applied. DesParte became acting chair of the PCAOB in early June when Gensler fired William Duhnke, saying he wants to take the board into a different direction; it is thought he is likely to be reappointed.. Duhnke’s tenure as chair of the PCAOB was marked with controversy. Investors complained that the board has been ignoring their views while being cozy with the auditing profession. Moreover, whistleblower complaints were filed against him, criticizing his management style. Duhnke was also sued by a senior officer, claiming she was fired because of her ethnicity and political affiliation. Duhnke has denied any wrongdoings. “We would like to express our sincere gratitude and appreciation to the staff of the PCAOB for their hard work and dedication,” Jurata and Zietsman said in their joint statement on August 23. “We remain fully committed to the mission and work of the PCAOB and our fiduciary duties as Board Members until we depart. We will leave the PCAOB with pride at having been involved in significant efforts and accomplishments, and we have nothing but respect for the important work we know the staff will continue to perform.”