The CIFiR's final report contains a number of recommendations that are intended to increase the usefulness of financial information to investors. At the same time the recommendations were designed to reduce the complexity of the financial reporting system to investors, preparers, and auditors.
The FAF and the FASB strongly supported the formation of the Committee and its work. Robert Herz, FASB Chairman, was an Official Observer to the Committee while other FASB members participated as observers to each of the Committee’s four subcommittees. In addition the FASB provided several staff resources to the Committee.
The FAF and the FASB response explains the actions they are taking or will be taking with respect to each of the Committee’s recommendations. The response contains two parts (1) an Executive Summary that includes their response to key Committee recommendations related to accounting standards; and (2) an Appendix detailing their response to each of the Committee’s recommended improvements to accounting standard setting.
The response is available for download at http://www.fasb.org/.
Why this FAF and FASB response is important to you.
The recommendations of the Committee emphasize:
- The investors as the primary users of financial statements
- The need for a disclosure framework
- That accounting standards should be based on business activities broadly and not on specific industries.
- Improvement needed for gathering input about potential benefits and costs of proposed standards.
Additional details on the FAF and FASB response are available at www.cpafirmsupport.com.
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