FASB is one of 12 national and regional standard setters that will participate as an inaugural member of a group that has been formed to provide technical advice to the International Accounting Standards Board (IASB).
The group, known as the Accounting Standards Advisory Forum (ASAF), was formed to improve cooperation among standard setters across the globe and advise the IASB as it develops IFRS. The ASAF, whose membership was announced Tuesday, also will include the:
- South African Financial Reporting Standards Council, supported by the Pan African Federation of Accountants (PAFA).
- Accounting Standards Board of Japan.
- Australian Accounting Standards Board.
- Chinese Accounting Standards Committee.
- Asia Oceania Standard Setters Group (AOSSG), represented by the Hong Kong Institute of Certified Public Accountants.
- Accounting Standards Committee of Germany.
- European Financial Reporting Advisory Group (EFRAG).
- Spanish Accounting and Auditing Institute.
- United Kingdom Financial Reporting Council.
- Group of Latin American Standard Setters (GLASS), represented by the Brazilian Committee of Accounting Pronouncements.
- Canadian Accounting Standards Board.
Four members are from Asia-Oceania, four are from Europe, three are from the Americas, and one is from Africa. Asia-Oceania and Europe each received one of the two at-large positions on the forum. The first meeting of the ASAF is scheduled to take place April 8–9 in London.
The IFRS Foundation reviewed 25 nominations for membership of the ASAF on the basis of geographical balance, membership criteria, and other factors.
FASB was selected to participate even though the SEC has not yet decided whether to accept use of IFRS for financial reporting for public companies in the United States. Although some language in the initial ASAF proposal appeared to make FASB’s participation uncertain, changes were made that did not preclude FASB’s membership in the forum.
ASAF members have been asked to support and contribute to the IFRS Foundation in its mission to develop a single set of high-quality, globally accepted financial reporting standards. But ASAF members will be able to be independent in the sense that they operate under their own specific national mandates.
“The FASB looks forward to participating in the Accounting Standards Advisory Forum and working with other standard setters to contribute to the ongoing improvement and convergence of global accounting standards,” FASB Chairman Leslie Seidman said in a news release. “We also look forward to working with other standard setters to augment and improve the conceptual framework, which will lay the groundwork for consistent, high-quality standards.”
Michel Prada, who chairs the IFRS Foundation’s trustees, said in a news release that the creation of the ASAF will allow the foundation to replace the multiple, bilateral agreements it has had with different jurisdictions. The ASAF instead will be a single forum based on an agreement signed by its members.
“The ASAF is a complement to the IASB’s ongoing dialogue with the international standard-setting community in pursuit of its central mission to develop a global language for financial reporting,” Prada said.
Membership in the ASAF will be reviewed after two years.
—Ken Tysiac (firstname.lastname@example.org) is a JofA senior editor.