NASBA Board of Directors Supports FAF Process

October 21, 2011

A new private company plan was released October 4, 2011 for public comment by the Board of Trustees of the Financial Accounting Foundation (FAF). The centerpiece of the plan is a new council with the authority to identify, propose and vote on specific improvements to U.S. accounting standards for private companies.

The FAF is the independent, private-sector organization responsible for the oversight and administration of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). The FASB and GASB set U.S. accounting standards for public and private companies, not-for-profit organizations and state and local governments.

NASBA Board of Directors’ Resolution on the Financial Accounting Foundation’s Position on Private Company Standards

At its meeting on Friday, October 21, 2011, the Board of Directors of the National Association of State Boards of Accountancy, Inc., authorized the President and Chair to communicate the following to the Financial Accounting Foundation (FAF):

1. The Board of Directors agrees with and commends the FAF process;
2. Acknowledges the sovereignty of State Boards’ independent actions and authority to fulfill their responsibilities pursuant to Sarbanes-Oxley Section 209, pertinent state laws and the 10th Amendment to the U.S. Constitution;
3. Supports the conclusions of the FAF as exposed in its “Plan to Establish the Private Company Standards Improvement Council;” and
4. Supports and intends to monitor the accountability measures contained therein to ensure the Improvement Council will accomplish its objectives.

See NASBA Board of Directors’ Resolution
NASBA Board of Directors’ Resolution on the Financial Accounting Foundation’s Position on Private Company Standards