VIEWS: 5 PAGES: 4 CATEGORY: Business & Economics POSTED ON: 6/13/2010
Since the author's last update, IMA's Financial Reporting Committee (FRC) and Small Business Financial and Regulatory Affairs Committee (SBC) have been addressing issues that impact the management accounting profession. While the FRC meetings focus predominantly on evolving financial reporting standards, the Committee's March 2009 meeting also included a renewal of the Committee's charter. The Committee also usually gets a technical update from members and staff of the Financial Accounting Standards Board (FASB) at each meeting. FRC members offered their support for the project during their annual meeting with the FASB in September 2008, but they also expressed concern that constituents within the accounting profession weren't provided enough information about the project to feel comfortable with using the mechanism to perform research projects in a transparent manner. The Small Business Financial and Regulatory Affairs Committee is committed to expanding its horizon beyond its original initiative of external advocacy.
ADVOCACY Linda Devonish-Mills, CPA, Editor Update on Small Business and Financial Reporting Committees The Financial Reporting Commit- tee and Small Business Financial and Regulatory Affairs Commit- tee are forging ahead on issues Committee will seek to have an concerns about guidance the important to IMA members and active membership of 20-25 pro- Board issued on fair value ac- are making a difference. fessionals, with representation counting. You can find these letters from financial statement preparers, on IMA’s website at www.imanet. auditors, academia, and other org under External Relations/ S ince my last update, IMA’s Financial Reporting Commit- tee (FRC) and Small Business experts in the financial reporting or analyst field. Given IMA’s demographics, approximately 60% Professional Advocacy/Financial Reporting Committee. Leslie and Marc also provided Financial and Regulatory Affairs of the Committee members will be updates about the FASB Codifica- Committee (SBC) have been from public companies and have tion project. This project focuses addressing issues that impact the financial statement preparation on reorganizing the presentation of management accounting responsibilities, and the balance the FASB’s existing standards and profession. will be accounting professionals in related authoritative literature into the other fields. a topical format, available online, FRC Update The Committee also usually gets that would help accounting profes- In recent years, the Financial a technical update from members sionals with research capabilities. Reporting Committee has been and staff of the Financial Account- The one-year verification phase composed of 20-25 members from ing Standards Board (FASB) at that began in January 2008 ended various accounting backgrounds. each meeting. In March 2009, recently. During the verification While the FRC meetings focus pre- FASB members Leslie Seidman and phase, constituents were encour- dominantly on evolving financial Marc Siegel discussed fair value aged to review pronouncements reporting standards, the Commit- accounting. Their update was par- and other authoritative literature in tee’s March 2009 meeting also ticularly timely because a few the Codification format on the included a renewal of the Commit- weeks later, at an April 2 Board FASB’s website (www.fasb.org) and tee’s charter. FRC Chair Mick meeting, the FASB voted on the then provide comments. The Codi- Homan led the review of the char- revision of guidance related to fair fication goes live this month. ter, which focused on the size and value accounting when a market FRC members offered their sup- composition of the Committee isn’t active or market transactions port for the project during their along with the primary activities are distressed. The proposed annual meeting with the FASB in and participation expectations of revised guidance would amend the September 2008, but they also Committee members. The general original guidance incorporated in expressed concern that con- consensus among FRC members Statement of Financial Accounting stituents wi
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