Financial Accounting Foundation Will Run FASB-GASB Reviews

The Financial Accounting Standards Board and the Governmental Account Standards Board have long worked to draft

The Financial Accounting Standards Board and the Governmental Account Standards Board have long worked to draft financial reporting rules for the business sector and government sector, respectively. However, some of their standards will soon come under scrutiny from the Financial Accounting Foundation.

"The FASB and GASB standards selected for post-implementation review represented significant and important accounting changes when issued and continue to provide important information today to investors, stakeholders and other users," said FAF Chairman John J. Brennan.

He added that the group was looking forward to determining if the changes were achieving their goals and would simultaneously be seeking feedback from stakeholders "on the application, usefulness and effectivenss of these standards."

Specifically, the FAF will be reviewing FASB's statement No. 131 - requiring public businesses to share financial and descriptive information about their "reportable operating segments" - and No. 141R, which mandates that an acquiring organization has to recognize the assets, liabilities and noncontrolling interests of the company it's buying, though some exceptions apply.

Additionally, GASB statements No. 3 (deposits with financial institutions) and No. 40 (deposit and investment risk disclosures) will be scrutinized.