The IMA® (Institute of Management Accountants) Financial Reporting Committee (FRC or Committee) issued a comment letter in response to the Financial Reporting Foundation (Foundation or FAF) Strategic Plan Draft for Public Comment (Proposed Plan).
In issuing the Proposed Plan, the FAF seeks input on its goals, activities, and responsibilities. Broadly, the FAF’s mission is to provide governance and oversight to ensure that the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (collectively, Boards) fulfil their respective missions to provide high-quality standards.
Emphasizing that the FAF’s independence is critical to its mission, in its comment letter, the FRC states that the Proposed Plan is generally consistent with the roles of the Trustees and staff. More specifically, the comment letter raises the following:
- Support for a Foundation strategic plan that is separate from the respective Boards
- Suggestions on certain phrasing to support the concept of the FAF’s independence from the Boards
- Improvements that are necessary to the online navigability and understandability of FASB Accounting Standards Codification (that is, e-access to U.S. Generally Accepted Accounting Principles)
- Support, with clarification, for the monitoring and engagement roles of the FAF and Boards regarding sustainability standards
- Minor changes to the language on diversity, equity, and inclusion