New and existing accounting and financial reporting standards issued by FASB and GASB will be subject to a post-implementation review. The Board of Trustees of the Financial Accounting Foundation (FAF), the oversight body for the two standard setters, announced a review process it described as independent of the standard- setting process of FASB and GASB. FAF Chairman John J. Brennan called it a “mechanism for obtaining ‘real world’ feedback and analysis” of standards.
In July, FAF named Mark Schroeder the leader of a newly created post-implementation review effort for standards and other authoritative pronouncements. The review staff will “study significant accounting standards to assess whether the intended financial reporting objectives underlying those standards are being met,” according to a FAF press release. The review staff will report to the trustees and FAF President and CEO Terri Polley, but members will be recruited from the ranks of experienced FASB and GASB staffers to promote collaboration aimed at improving the standard-setting process.
The review staff will test the initial review process by selecting one FASB and one GASB standard. The FASB test is expected to be completed by mid-2011. FAF did not detail the timing of the GASB standard review.
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