FASB report describes investor outreach

By Ken Tysiac

FASB engaged in more than 430 investor interactions in the year ended June 30, 2021, according to an Investor Outreach Report published this week.

The report notes that FASB seeks investor input through its Investor Advisory Committee as well as through investors who are members of other advisory bodies such as the Financial Accounting Standards Advisory Council, the Not-for-Profit Advisory Council, the Private Company Council, and the Small Business Advisory Committee.

Investors also are involved in FASB's agenda consultations, post-implementation reviews, technical and research agenda projects, and continuous improvement initiatives.

"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 news release. "The report explains our investor outreach program, activities over the last year, how we'll continue to build on those initiatives to enhance our outreach efforts, and perhaps most importantly, how investors can share their views with us."

The publication of the Investor Outreach Report coincides with the launch of an enhanced web portal FASB has created for investors.

According to the report, FASB's investor outreach included:

  • Buy-side representatives (37%).
  • Sell-side representatives (35%).
  • Credit rating agency analysts and managers (10%).
  • Lenders (5%).
  • Private-equity representatives (3%).
  • Others (10%).

The board seeks input from a wide range of investors and also engages with investors who are new to FASB.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA's editorial director.

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