Committees Spur New Advocacy Efforts by ProQuest


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                                                                         Linda Devonish-Mills, CPA, Editor

Committees Spur New
        Advocacy Efforts
IMA’s Financial Reporting
Committee and Small Business
Financial and Regulatory Affairs
Committee continue to be a voice     mittees are strong, and both            cussed their progress on joint
for the association’s advocacy       groups are passionate about keep-       projects with the International
efforts.                             ing abreast of technical issues that    Accounting Standards Board
                                     impact the management account-          (IASB) pursuant to convergence
                                     ing profession and serving as           efforts under the Boards’ Memo-

G    reetings from the world of
     Professional Advocacy and
the Financial Reporting Commit-
                                     advocates for IMA.

                                     FRC Update: Liaison Meeting
                                                                             randum of Understanding. Most
                                                                             of the FASB’s current projects,
                                                                             including those developed in
tee (FRC) and Small Business         with the FASB                           response to the recent financial
Financial and Regulatory Affairs     The FRC conducts four formal            crisis, are being worked on jointly
Committee (SBC). Some of you         meetings each year, including an        with the IASB with the goal of
may wonder why we have two           annual meeting with the Financial       issuing aligned guidance.
committees that, at times, address   Accounting Standards Board                 In the past, most convergence
the same issues. The diverse back-   (FASB) at its headquarters in Nor-      projects have been led individual-
grounds of Committee members         walk, Conn. Chairman Bob Herz,          ly by staff from one of the Boards,
allow the Institute of Management    the other four Board members, and       with the other Board then holding
Accountants (IMA®) to have a         certain staff members attended the      its own deliberations. Now, how-
stronger voice for its members       September 21, 2009, meeting. The        ever, the Boards have agreed that
regarding technical issues that      commitment from the FASB to             full partnership on deliberations
impact the management account-       participate in meetings with the        tends to be more successful in dri-
ing profession.                      FRC, particularly in light of recent    ving converged standards, so proj-
   FRC is composed mainly of         actions that reduced the Board          ects generally will be jointly
members from large companies, as     from seven to five members, is an       staffed and deliberated. During
well as accounting firms, consul-    indication of the respect the Com-      the meeting, FRC members
tants, and other constituents        mittee has generated among the          expressed concern about how
involved in preparing and analyz-    Board members and in the                joint projects were conducted in
ing large-company financial state-   accounting profession. Mick             the past and about the lack of
ments. Accordingly, it can express   Homan, vice president of corporate      convergence in the final proposals
opinions on issues from a large-     accounting at Procter & Gam
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