Trustees Seeking Members for Key Advisory Body
FASB’s trustees announced on August 2 that the application period is now open for new members of the Financial Accounting Standards Advisory Council (FASAC), a key advisory body to the nation’s top developer of U.S. GAAP. New members will serve an initial one-year term starting on January 1, 2023. Those submitting nominations for FASAC seats can do so via an application form by August 19, announced trustees of the Financial Accounting Foundation (FAF). The FASAC advises FASB about its technical agenda, strategy, and other initiatives in its process to develop U.S. GAAP for public and private companies and not-for-profit organizations. The 36-member FASAC comprises senior level accounting professionals experienced in financial statement preparation, analysis, auditing, and academia. The panel meets four times annually. A representative from the SEC’s Office of the Chief Accountant (OCA) and the PCAOB attend the meetings, providing updates and other insights. The next FASAC meeting will take place on September 20.
Report Showcases Efforts to Engage Investor Community
FASB has published its latest investor report, the second in a year, in order to showcase its stringent efforts to get standards-setting input from the nation’s capital allocators. The report is a step by the board to assuage concerns raised by those investors who said that the FASB had not sufficiently taken investors’ interest to heart in prior years when developing U.S. GAAP. “If there’s one message we hope to convey through this year’s report, it’s that the FASB is engaging with investors in all stages of our due process and we are actively listening and responding to their feedback,” Chair Richard Jones and Technical Director Hillary Salo said jointly in the report. “Investor input was a key driver as we developed our Invitation to Comment, “Agenda Consultation,” which provided stakeholders an important opportunity to weigh in on the FASB’s future direction.” A key mission of FASB is to develop high-quality financial reporting standards that investors find useful in making investment decisions, and therefore the board has been quick to address any criticism from that demographic. In response to investors, the following seven topics were added or refined on either its technical or research agenda: disaggregation of financial reporting information; statement of cash flows; environmental, social, and governance (ESG) related transactions or disclosures; intangible assets; financial KPIs or non-GAAP metrics; digital assets; and income tax disclosures. The report comes about two weeks after the board wrapped up discussions to develop a new five-year technical agenda to cover 2022–2026.
2022 Guide for Government Auditing Standards and Single Audits Published
The AICPA on July 28 announced the publication of the 2022 edition of its Audit and Accounting Guide for Government Auditing Standards and Single Audits (AAG-GAS). The AICPA said the guide explains CPAs’ responsibilities when auditing financial statements following governmental auditing standards (GAS). It also describes auditors’ responsibilities when performing a single audit or program-specific audit under the Single Audit Act and the Uniform Guidance. It is “an indispensable resource for auditors performing single audits and management of nonfederal entities that receive federal awards,” according to the standards setter. In particular, the AICPA said that the 2022 edition will help CPAs better understand the complexities of GAS and identify professional requirements when performing a Uniform Guidance compliance audit. The latest edition provides illustrative auditor’s reports for both GAS audits and the compliance audit under the Uniform Guidance so that CPAs can properly report on a single audit.