FASB, GASB STANDARDS UNDER REVIEW
The Financial Accounting Foundation said that it would conduct post-implementation reviews of financial accounting and reporting standards issued by the two boards it oversees, the Financial Accounting Standards Board and the Governmental Accounting Standards Board.
The new FAF process is designed to be independent of the standard-setting process of FASB and GASB. The FAF review staff will study significant accounting standards to assess whether the intended financial reporting objectives underlying those standards are being met.
The review staff will be drawn from experienced FASB and GASB staff to promote a collaborative review process aimed at improving standard-setting. 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-year 2011.
COSO TO UPDATE FRAMEWORK
The Committee of Sponsoring Organizations of the Treadway Commission has initiated a project to review and update the COSO Internal Control Integrated Framework, to make the existing framework and related evaluation tools more relevant in the increasingly complex business environment so that organizations worldwide can better design, implement and assess internal control.
Enhancements to the framework are not intended to alter the core principles first developed in 1992, but rather to facilitate more robust discussion of internal control. Certain concepts and guidance will be refined to reflect the evolution of the operating environment, and changed expectations of regulators and other stakeholders. In addition, enhancements are expected to consider more than financial reporting and to consider ways to enrich the guidance on operations and compliance objectives.
COSO has engaged Big Four firm pwc to work under its leadership in developing the updated framework.
The initiative is expected to culminate in an updated framework in 2012, the 20th anniversary of the initial framework.
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