FAF Requests People to Participate in Post-Implementation Review of Accounting Standards

The FAF has once again requested people to share their opinions on the post implementation reviewing of 2 accounting principles for local and state government organizations. The Financial Accounting Foundation that supervises the functioning of Financial Accounting Standards Board and Governmental Accounting Standards Board, in past has been carrying out post-implementation review procedures of private as well as government sector accounting principles to check whether they are working appropriately in practice or not.

In the month of January, FAF had released its very first review report of FIN 4- Accounting for Uncertainty in Income Tax Positions, which is basically an accounting standard created by FASB for businesses. In the month of February, the Financial Accounting Foundation made announcements regarding its plan to carry out reviews on post implementation of many other GASB and FASB standards further. This also included the review of GASB statements No. 3-Deposits with Financial Institutions, Investments (consisting of Repurchase Agreements and Reverse Repurchase Agreements as well as GASB’s Statement No. 40-Deposit and Investment Risk Disclosures.

Both the statements need disclosures regarding investments and deposits, which also includes the related interest and credit rate risks. Governmental Accounting Standards Board Statement number 3 offers accounting related guidance for repurchase as well as reverse repurchase agreements as well.

Governmental Accounting Standards Board is planning to conduct a survey to find out the performance of the accounting standards. The survey will be conducted in the month of September. It will assist the Financial Accounting Foundation in determining how effective the standards are by speaking to the preparers, users, academics, regulators and auditors who are getting affected by the standards. Stakeholders, who are looking forward to take part in the surveys that are typically carried out by an entity that conducts independent surveys, on FAF’s behalf, can register their names online. In case they have any particular questions with regard to the post implementation review of the Statements number three and forty of GASB, then they can get in touch with FAF on 3and40-PIR@faf-gasb.org.

This review is being conducted with an intention to assist the trustees at FAF in their efforts around evaluating how effective the standard designing process is for both FASB and GASB.